If a Consumer Places a Value of $20 on a Particular

question 85

Multiple Choice

If a consumer places a value of $20 on a particular good and if the price of the good is $25,then the

• A)consumer has consumer surplus of $5 if he buys the good.
• B)consumer does not purchase the good.
• C)price of the good will rise due to market forces.
• D)market is out of equilibrium.

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Definitions:

Discrimination

Unjust or prejudicial treatment of different categories of people, especially based on race, age, or sex.

Group Polarization

The phenomenon where the attitude of a group towards a particular issue becomes more extreme than the initial inclination of its members following group discussions.

Deindividuation

A concept in social psychology that describes the loss of self-awareness in groups, which can lead to disinhibited and impulsive behavior.

Social Facilitation

The tendency for people to perform differently when in the presence of others than when alone, often performing better on simpler or well-practiced tasks.