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The Latest Model Car in the Dealer's Showroom Has a Sticker

Question 45

Multiple Choice

The latest model car in the dealer's showroom has a sticker price of $35,000.00. Fred, the shopper, has decided that he would pay no more than $32,000.00 for the car. After two hours of bargaining with the saleswoman, Fred actually purchases the car for $31,000.00. Fred, therefore, has obtained a consumer surplus of


A) $35,000.00.
B) $32,000.00.
C) $4,000.00.
D) $1,000.00.

Correct Answer:

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