At Nick's Bakery,the Cost to Make a Cheese Danish Is

question 27

Multiple Choice

At Nick's Bakery,the cost to make a cheese danish is $1.50 per danish.As a result of selling ten danishes,Nick experiences a producer surplus in the amount of $20.Nick must be selling his danishes for

• A)$2.00 each.
• B)$0.50 each.
• C)$3.50 each.
• D)$5.00 each.

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Definitions:

Potential Sellers

Potential sellers are individuals or entities that may be willing to sell goods or services under the right conditions.

Price Floor

A government-imposed minimum price charged on a product, below which it cannot be sold to prevent market prices from falling too low.

Surplus

An excess of revenues over expenses in a budget, or an excess of goods or materials than what is needed.

Price Floor

A government-imposed minimum price that can be charged for a good or service, aimed at preventing prices from falling too low.