Suppose that the price of a new bicycle is $300. Sue values a new bicycle at $400. It costs $200 for the seller to produce the new bicycle. What is the value of total surplus if Sue buys a new bike?
a. $300
b. $500
c. $100
d. $200
e. $400
I know the answer is not E
2007-03-22 15:20:47 · 4 answers · asked by investing1987 3 in Education & Reference ➔ Higher Education (University +)
sue sould buy a used bike it would be much cheaper
2007-03-22 15:25:21 · answer #1 · answered by Anonymous · 0⤊ 0⤋
c the bike cost 200 to make and sells for 300
2007-03-22 22:23:17 · answer #2 · answered by calired67 4 · 0⤊ 0⤋
Total Suplus = value of the good to buyers - cost to sellers
400 - 200 = 200
answer is "D"
2007-03-22 22:31:17 · answer #3 · answered by lilbrowardchick 2 · 0⤊ 0⤋
d. $200
2007-03-22 22:23:33 · answer #4 · answered by jrfire91 3 · 0⤊ 0⤋