Suppose Bianca buys a used a textbook from Sebastian for $55. If Bianca's surplus from this transaction was $10, we can infer that:
A. Bianca's reservation price was $60, and Sebastian's reservation price was $50.
B. Sebastian's reservation price was $45.
C. Bianca's reservation price was $65.
D. Bianca's reservation price was $45.
Answer: C
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How can this be considered a differentiated product?
In the above figure, suppose the economy is initially at a short-run equilibrium at point D and there is an unanticipated increase in the money supply. Which point represents the new short-run equilibrium?
A. A B. B C. C D. D
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