Anna was willing to pay $130,000 for Betty’s house, which was listed at $125,000, but Anna could only afford to spend $120,000. After negotiating, Betty sold Anna the house for $120,000. How does consumer surplus apply to this situation?
a. The consumer surplus is indeterminable because we do not know how much Betty paid for the house.
b. The consumer surplus is $5,000 because Anna got Betty to lower her price by that amount.
c. The consumer surplus is $10,000 because Anna was willing to pay that much more than she did.
d. There is no consumer surplus because Anna did not pay less than she was willing and able to pay.
d. There is no consumer surplus because Anna did not pay less than she was willing and able to pay.
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a. True b. False Indicate whether the statement is true or false
If residents of the United States give more gifts to relatives abroad than they receive, unilateral transfers will be
A. positive. B. zeroed out. C. unaffected. D. negative.
If a consumer has an income of $200, the price of X is $5, and the price of Y is $10, the maximum quantity of X the consumer is able to purchase is:
A. 5 B. 10 C. 20 D. 40
How does the price of the final good for which labor is used to produce affect the demand for labor?
What will be an ideal response?