Suppose Brent,Callie,and Danielle Each Purchase a Particular Type of Electric

question 16

Multiple Choice

Suppose Brent,Callie,and Danielle each purchase a particular type of electric pencil sharpener at a price of $20.Brent's willingness to pay was $22,Callie's willingness to pay was $25,and Danielle's willingness to pay was $30.Which of the following statements is correct?

• A)Had the price of the pencil sharpener been $24 rather than $20,only Danielle would have been a buyer.
• B)Brent's consumer surplus is the smallest of the three individual consumer surpluses.
• C)For the three individuals together,consumer surplus amounts to $60.
• D)The fact that all three individuals paid $20 for the same type of pencil sharpener indicates that each one placed the same value on that pencil sharpener.

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Definitions:

Unilateral Contract

A contract where only one party makes a promise to perform an action in exchange for a performance by the other party.

Bilateral Contract

A contractual agreement in which both parties exchange mutual promises to perform certain things.

Proportional Recovery

The concept of obtaining a share of recovery or compensation that is directly proportional to one's loss or investment.

Common Law

A legal system based on court precedents and customs, as opposed to statutory laws.