Which of the Following Is an Example of Consumer Surplus

question 345

Multiple Choice

Which of the following is an example of consumer surplus?

• A) Jose buys a hamburger for $2 and tells you he would not have paid a penny more.
• B) John believes the price he paid for his computer was too high.
• C) Mary buys a paper tablet for $2 and finds the same good at another store for $1.50.
• D) Sue would have paid $15 for a new compact disc but paid only $10.
• E) Anne finds a mountain bike for which she is willing to pay a maximum of $550 and the price of the bike is $600.

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Definitions:

Breach of Warranty

The failure to fulfill the terms of a promise or guarantee made about the quality or condition of a product or service.

Finance Company

A type of financial institution that provides loans to consumers and businesses, often for specific purchases such as vehicles, equipment, or home improvements.

Holds a Lien

Refers to the legal right or interest that a lender has on a property, until a debt owed by the property owner is paid off.

Implied Warranties

Legally inferred guarantees that ensure products meet minimum quality standards, providing protection beyond explicit statements.