A Market Has Four Individuals,each Considering Buying a Grill for His

question 99

Multiple Choice

A market has four individuals,each considering buying a grill for his backyard.Assume that grills come in only one size and model.Abe considers himself a grill-master,and finds a grill a necessity,so he is willing to pay $400 for a grill.Butch is a meat-lover,honing his grilling skills,and is willing to pay $350 for a grill.Collin just met the girl of his dreams,and she loves a good grilled steak,so in his effort to impress her he is willing to pay $320 for a grill.Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp,so he is willing to pay $200 for a grill. If the market price of grills increases from $300 to $325,given the scenario described:

• A) Collin would drop out of the market.
• B) Collin's surplus would decrease the most.
• C) Collin is the only consumer who would be affected in terms of surplus.
• D) Daniel's surplus would decrease.

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Definitions:

Large Number

In economics, it often refers to a market condition where there are many buyers and sellers, leading to competitive prices.

Monopolistic Competitor

A monopolistic competitor operates in a market structure characterized by many firms offering products that are similar but not identical, leading to differentiated competition.

Sandwiches

A commonly consumed food item consisting of two or more slices of bread with one or more fillings between them.

Plate Glass

A type of glass that is made by cooling molten glass on a flat surface, resulting in large, flat panels used in windows and doors.