Behavioral economists have discovered the following things about people's reaction to losses:
A. People judge losses in relative terms; i.e., relative to the status quo
B. People experience increasing marginal disutility from losses
C. People would feel the loss of $1,000 more intensely than they would feel the gain of $1,000
D. When people lose successive equal amounts, the initial losses are more painful than later ones
B. People experience increasing marginal disutility from losses
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The market demand curve for mousetraps is
A) found by summing the quantities of mousetraps demanded at each income level by each buyer. B) found by summing the prices of mousetraps at each quantity of mousetraps demanded by each buyer. C) the horizontal sum of the individual demand curves for mousetraps of all the buyers. D) Both answers B and C are correct. E) Both answers A and C are correct.
Refer to the figure above. When the supply curve of flash drives is S2 and the demand curve of flash drives is D, what is the surplus in the market when the price is $7?
A) 0 units B) 10 units C) 20 units D) 40 units