If you are willing to sell your car business for 500,000 and someone offers you 420,000 for it, this ...

If you are willing to sell your car business for 500,000 and someone offers you 420,000 for it, this transaction will generate:
 a. There is no surplus created
 b. 80,000 worth of seller surplus and unknown amount of buyer surplus
  c. 40,000 worth of buyer surplus and 40,000 of seller surplus
 d. 80,000 worth of buyer surplus and unknown amount of seller surplus

QUESTION 2

The difference between the maximum price the consumer is willing to pay and the price the consumer actually pays for a product is referred to as:
 a. market surplus.
 b. market shortage.
 c. consumer surplus.
  d. producer surplus.

QUESTION 3

A buyer values a house at 525,000 and a seller values the same house at 485,000 . If sales tax is 8 and is levied on the buyer, then, what would be the highest price that the buyer would be willing to pay?
 a. 525,000
  b. 523,800
  c. 485,000
  d. 486,111

QUESTION 4

A buyer values a house at 525,000 and a seller values the same house at 485,000 . If sales tax is 8 and is levied on the seller, then what would be the lowest price that the seller would be willing to sell at?
 a. 527,000
  b. 523,800
  c. 525,000
  d. 500,000

QUESTION 5

A consumer values a house at 525,000 and a producer values the same house at 485,000 . If the transaction is completed at 510,000 . what level of tax rate will result in unconsummated transaction?
 a. 1
  b. 5
  c. 3
  d. 2

QUESTION 6

A consumer values a house at 525,000 and a producer values the same house at 485,000 . If the transaction is completed at 510,000 . what amount of tax will result in unconsummated transaction?
 a. A tax of 9,000
  b. A tax of 14,000
  c. A tax of 15,000
  d. A tax of 18,000