Answer:
1. Neither ; 2. Consumer Surplus ; 3. Producer Surplus
Explanation:
Consumer Surplus is the difference between a good's price paid by consumer, & maximum price the consumer is willing to pay for the good.
Producer Surplus is the difference between a good's price received by a seller, & minimum price at which the seller is willing to sell the good.
1. Willing to pay $209 for watch, buyer willing to sell at $196, no trade as price ceiling at $190 : It illustrates neither concept as transaction has not actually occurred, so no price established.
2. Willing to pay $39 for sweater, purchased it for $32 : It illustrates 'Consumer Surplus' case = $7 , as it shows difference between maximum willingness to pay by buyer ($39) & the actual buy price ($32)
3. Willing to sell laptop at $190, sold it at $199 : It illustrates 'Producer Surplus' case = $9 , as it shows difference between minimum willingness to sell price ($190) & actual sale price ($199)
Answer:
Ke 0.08690 = 8.69%
Explanation:
<u>The capital assets price model formula(CAPM) is as follows:</u>
risk free = 4% = 4/100 = 0.04
market rate = 11% = 11/100 = 0. 11
premium market: (market rate - risk free) = (0.11-0.04) = 0.07
Beta(non diversifiable risk) 0.67
Ke 0.08690
The consumer buying process begins when consumers recognize that they have an unsatisfied need. :)
