Multiple Choice
Suppose there are three identical vases available to be purchased. Buyer 1 is willing to pay €30 for one, buyer 2 is willing to pay €25 for one, and buyer 3 is willing to pay €20 for one. If the price is €25, 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 €80.
B) One vase will be sold and consumer surplus is €5.
C) One vase will be sold and consumer surplus is €30.
D) Three vases will be sold and consumer surplus is €0.
E) Two vases will be sold and consumer surplus is €5.
Correct Answer:
Verified
Correct Answer:
Verified
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