MCQOPTIONS
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| 1. |
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 ? |
| A. | Three vases will be sold, and consumer surplus is Rs80 |
| B. | One vase will be sold, and consumer surplus is Rs5. |
| C. | One vase will be sold, and consumer surplus is Rs30 |
| D. | Three vases will be sold, and consumer surplus is Rs0. |
| E. | Two vases will be sold, and consumer surplus is Rs5. |
| Answer» F. | |