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

question 119

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 falls from $375 to $330,given the scenario described,which of the following can be said?

• A) Butch will join the market, but receive no consumer surplus.
• B) Butch and Collin will join the market, and together will receive $30 in consumer surplus.
• C) Abe will experience a decrease in consumer surplus of $45.
• D) Abe will experience an increase in consumer surplus of $45.

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Definitions:

1950s

A decade marked by significant cultural, economic, and technological changes worldwide, post-World War II.

Psychoanalytic Approach

A method of psychological therapy and analysis rooted in Freudian theory, emphasizing unconscious motivations and early childhood experiences.

Dreams

Sequences of thoughts, images, and sensations occurring in a person's mind during sleep, often rich with symbolic or emotional content.

Approaches To Therapy

Various methods and techniques used by psychologists and therapists to treat mental health disorders, including cognitive-behavioral therapy, psychoanalysis, and humanistic therapy.