If Jenna buys a CD at a price of $10, she gets a consumer surplus of $20 . This means she
a. does not have enough money to buy the CD
b. will not buy the CD since marginal utility is not high enough
c. was willing to pay as much as $30 for the CD
d. was willing to pay as much as $20 for the CD
e. will have $30 left over after she buys the CD
C
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If Walmart issues $250 million in new stock to finance the renovation of their retail stores, this is an example of
A) a stock market transaction. B) indirect finance. C) a bond market transaction. D) direct finance.
A sudden decrease in the market demand in a competitive industry leads to
a. Losses in the short-run and average profits in the long-run b. Above average profits in the short-run and average profits in the long-run c. New firms being attracted to the industry d. Demand creating supply