Multiple Choice
Mike really enjoys Bitter Sweet coffee and is willing to pay $10 per cup. The retail price is $3. Which statement is correct?
A) Mike's consumer surplus is $10 per cup.
B) Mike has a consumer surplus of $7 per cup.
C) The seller can raise the price to $13 and still make a sale to Mike.
D) Mike is getting a poor deal on the coffee.
Correct Answer:
Verified
Correct Answer:
Verified
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