Multiple Choice
Which of the following is a likely dependent variable a market researcher may use in a marketing experiment related to consumer surplus and willingness to pay?
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5. Consumer and Producer Surplus; Price Ceilings and Floors
Consumer Surplus and Willingness to Pay
Multiple Choice
Which of the following is an example of a final good or service?
A
Wheat sold by a farmer to a bakery
B
Flour sold by a mill to a bakery
C
Steel sold by a manufacturer to an automobile company
D
A loaf of bread purchased by a consumer at a grocery store
Verified step by step guidance1
Understand the definition of a final good or service: it is a product that is purchased by the end user for consumption, not for further processing or resale.
Identify the nature of each option: wheat sold by a farmer to a bakery, flour sold by a mill to a bakery, and steel sold by a manufacturer to an automobile company are all intermediate goods because they are used as inputs to produce other goods.
Recognize that a loaf of bread purchased by a consumer at a grocery store is a final good because it is bought for direct consumption and not for further production.
Apply the concept that only goods and services bought by the final user count as final goods in economic measurements like GDP to distinguish the correct example.
Conclude that the loaf of bread purchased by a consumer is the correct example of a final good or service.
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