With collective action problems, individual trade-offs are different than the trade-offs for society as a whole

Suppose Ferd truthfully tells the car dealer the maximum amount he's willing to pay for a Ford Mustang: $20,000 . The dealer says, "You're in luck; we have one on the lot for $20,000." Which of the following statements is true?

a. Ferd will not buy the car. b. The car is not worth $20,000. c. Ferd gets $20,000 in consumer surplus. d. Ferd gets no consumer surplus. e. The dealer earns $20,000 in consumer surplus.

Figure 4-12

Refer to . The exhibit illustrates the impact of granting a subsidy on a particular good. Which of the following is true for this subsidy given the information provided in the exhibit?
a.
The subsidy has been statutorily (legally) paid to buyers.
b.
The subsidy results in an increase in the selling price of the good.
c.
Sellers will receive a larger proportion of the benefit from this subsidy than buyers.
d.
All of the above are true.