Ask Question
BusinessBusiness
11 December, 07:08

Mister Jones was selling his house. The asking price was $220,000, and Jones decided he would take no less than $200,000. After some negotiation, Mister Smith purchased the house for $205,000. Smith's consumer surplus is A. $20,000. B. $15,000. C. $5,000. D. not able to be calculated from the information given.

+4
Answers (1)
  1. 11 December, 10:35
    0
    The correct answer is D. not able to be calculated from the information given.

    Explanation:

    The consumer surplus is the gap between the maximum price that the consumer is willing to pay and the price the consumer actually pay.

    So, in this case, to get consumer surplus, we have to know the price that Mister Smith was willing to pay and the price he actually paid. We only have the price he paid and we don't know how much he was willing to pay.

    Then, we are not able to calculate consumer surplus with the information given.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Mister Jones was selling his house. The asking price was $220,000, and Jones decided he would take no less than $200,000. After some ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Sandra and her partner are involved in the time-consuming, yet vital process of choosing among different strategies and altering them to best fit the long-term goals of their preschool for the next three years.
Answers (1)
Hand written resumes are still used freqently
Answers (1)
Suppose that National Bank of Guerneville has $33 million in checkable deposits, Commonwealth Bank has $41 million in checkable deposits, and the required reserve ratio for checkable deposits is 10%.
Answers (1)
Your company issued 1,000, 3.8% bonds (face value of each bond is $1,000) at 101.8250 on July 1st, 2019. The bonds are due on July 1, 2024, with interest payable each January 1 and July 1. The market rate at the time of the bond issuance was 3.4%.
Answers (1)
Gross output (go) reflects the overall status of the productive side of the economy better than gdp does. a. True b. False
Answers (1)
New Questions in Business
Find the ordinary time of a loan made on March 10 and due on May 10. 30 days 60 days 61 days 62 days
Answers (1)
Javier's employer pays for 43% of his annual health insurance premium. Javier pays the remaining balance by having it deducted from his paychecks in equal amounts twice a month throughout the year. If $157.
Answers (1)
Choose the BEST paraphrase of this sentence: Tashkent, the capital of Uzbekistan, has been an important market and trading place for hundreds of years.
Answers (1)
Economic exposure, a category of foreign exchange risk, is distinct from transaction exposure, which is concerned with the effect of exchange rate changes on individual transactions, most of which are short-term affairs that will be executed within
Answers (1)
According to liquidity preference theory, if there were a surplus of money, then A. the interest rate would be above equilibrium and the quantity of money demanded would be too large for equilibrium. B.
Answers (1)
Home » Business » Mister Jones was selling his house. The asking price was $220,000, and Jones decided he would take no less than $200,000. After some negotiation, Mister Smith purchased the house for $205,000. Smith's consumer surplus is A. $20,000. B. $15,000. C.
Sign Up Forgot Password?