c3 - A. B. C. D.

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A demand curve shows the relationship between:     A. the quantity demanded and the price of a good.   B. the quantity demanded of a good and consumer income.   C. the quantity demanded of a good and the prices of other goods.   D. the quantity that buyers are willing to buy and the quantity that sellers are willing to sell. 1 out of 1 Correct. A demand curve shows the quantity demanded at different prices.   According to the law of demand, if the price is lower, then:     A. the quantity demanded will be smaller.   B. the quantity demanded will be larger.   C. the quantity demanded will remain unchanged.   D. the quantity demand will be smaller or greater, depending on other factors. 1 out of 1 Correct. The law of demand indicates that the lower the price, the greater the quantity demanded.   Consumer surplus is:     A. the difference between the market price at which a consumer pays for a good and its production cost.   B. the difference between the maximum price at which a consumer is willing to pay for a good and the  price the consumer can afford to pay.   C. the difference between the maximum price at which a consumer is willing to pay for a certain quantity  of a good and its market price.   D. the difference between the minimum price at which a consumer is willing to pay for a certain quantity  of a good and its market price. 1 out of 1 Correct. Consumer surplus is the consumer’s gain from buying a good.   Graphically, total consumer surplus is the area:     A. beneath the demand curve and above the market price.   B. beneath the market price and above the demand curve.   C. beneath both the demand curve and the market price.   D. above both the demand curve and the market price.
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1 out of 1 Correct. Consumer surplus is the area beneath the demand curve and above the market price.   Refer to the following graph of a linear demand curve.  If the market price is $5, then total consumer  surplus is:   A. $250.
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