Harry pays only $15 000 to purchase a new car that he would have been willing to pay as much as $25 000 for. What would an economist say about this situation?
A) The seller of the car earned a $15 000 consumer surplus on the sale of the car.
B) Harry reaped $10 000 of consumer surplus from the transaction.
C) Harry reaped $15 000 of consumer surplus from the transaction.
D) The seller earned a $10 000 profit on the sale of the car.
Correct Answer:
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Q1: FIGURE 6-1 Q3: Why does producer surplus arise? Q4: The schedule below represents the willingness of Q5: Which of the following best explains the Q6: Phil and Lasca have always wanted to Q7: Why does consumer surplus arise? Q8: What is the term for the difference
A) Consumers buy
A) Sellers manufacture
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