Suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay Rs30 for one, buyer 2 is willing to pay Rs25 for one, and buyer 3 is willing to pay Rs20 for one. If the price is Rs25, how many vases will be sold and what is the value of consumer surplus in this market ?

Related Mcqs:

If a buyer’s willingness to pay for a new Honda is Rs20,000 and she is able to actually buy it for Rs18,000 her consumer surplus is ?

A. Rs18,000 B. Rs20,000 C. Rs2,000 D. Rs0....

An increase in the price of a good along a stationary supply curve______________?

A. increase producer surplus B. does all the things describe in these answers C. decrease producer surplus D. improves market equity...

An increase in the price of a good along a stationary demand curve ?

A. improves the material welfare of the buyers. B. decrease consumer surplus C. improves market efficiency. D. increase consumer surplus....

If a benevolent social planner chooses to producer less than the equilibrium quantity of a good, then ?

A. total surplus is maximized B. the value placed on the last unit production by buyers exceeds the cost of production. C. producer surplus is maximized D. the cost of production on the last unit produced exceeds the value placed on it by buyers. E. consumer surplus is maximized...

If buyers are rational and there is no market failure ?

A. free market solutions are efficient B. free market solutions maximize total surplus C. all of these answers D. free market solutions are equitable E. free market solutions are efficient and free market solutions maximize total surplus...