Which of the following statements best describes the concept of consumer surplus?
A) "Safeway was having a sale on Dreyer's ice cream so I bought 3 quarts."
B) "I was all ready to pay $300 for a new leather jacket that I had seen in Macy's but I ended up paying only $180 for the same jacket."
C) "I paid $130 for a printer last week. This week the same store is selling the same printer for $110."
D) "I sold my Blu-ray copy of Ben-Hur for $18 at a garage sale even though I was willing to sell it for $10."
Answer: B
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If there is surplus of a good, then the quantity demanded ________ the quantity supplied and the price will ________
A) is less than; rise B) is less than; fall C) is greater than; rise D) is greater than; fall
Which interest rates is most relevant in determining aggregate expenditures?
A) federal funds rate B) short-term real interest rate C) long-term nominal interest rate D) long-term real interest rate
The current base period for the CPI is
a. 1967. b. 1977. c. 1982–1984. d. 1990.
Economists assume people behave
A) instinctively.
B) rationally.
C) irrationally.
D) greedily.