Mary purchased a stuffed animal toy for $5. After a few weeks, someone offered her $100 for the toy. Mary refused. One can conclude that Mary's consumer surplus from the toy is
A) less than $5.
B) at least $95.
C) at least $100.
D) $105.
B
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The expected inflation rate is the
A) same as the actual inflation rate. B) inter-annual, non-energy inflation rate. C) inflation rate that people forecast and use to set the money wage and other money prices. D) rate that people expect the Bureau of Labor Statistics to announce each month, on which bookies take bets. E) inflation rate that the Federal Reserve system announces as the policy goal for the year.
Suppose the money market is in the liquidity trap and the Fed increases the supply of money. Individuals would rather hold __________ than __________ because they expect that bond prices can go no __________
A) bonds; money; higher B) bonds; money; lower C) money; bonds; higher D) money; bonds; lower
The output where MC = AVC is called the
A. revenue maximizing point. B. profit maximizing point. C. break-even point. D. shutdown point.
The economic principle of _________________ implies that the value of the subject property is determined by the price that market participants would pay to acquire a substitute property of similar utility and desirability,
Fill in the blank(s) with the appropriate word(s).