You buy some beads and string from a student on campus to make a bracelet for yourself. you value the materials at $9 but were charged only $7. unknown to you, the seller would have sold them for $5. after you make the bracelet, you like it more than the original materials used to make it. you value the bracelet at $15. one day, a random stranger (who values your bracelet at $28) compliments the bracelet and offers you $20 for it, and you decide to sell it to the stranger. what is the total surplus generated from the original purchase of beads and string combined with the sale of the bracelet to the stranger

Ronald sees that his employer's stock has grown from $20 a share to $60 a share this year, while most stocks have seen only 5% growth. his employer offers to let him convert a large portion of his salary into stock options. what is not a valid reason to turn down the stock offer? a)stocks with high returns have high volatility, and ronald's company may not grow further. b)ronald may be taxed more for capital gains than he would be for employment income. c)stock options are illiquid, and ronald may not be able to use them to pay for unexpected bills. d)ronald would be committing stock fraud if he exercises the options.