Suppose you recently sold your used car. Assume that no new production was involved in this transaction. Wealth was created because the buyer's willingness to pay was the value of your willingness to sell. Suppose you sold the car for $30,000. If the minimum price, or "bottom line," you would accept for the car is $11,000, and the most the buyer is willing to pay is $31,000, then the seller surplus is $ and the buyer surplus is $. The total surplus created by the transaction is $.

Money from an allowance or job is known as .

Assume that a local bank sells two services, checking accounts and atm card services. the bank’s only two customers are mr. donethat and ms. beenthere. mr. donethat is willing to pay $8 a month for the bank to service his checking account and $2 a month for unlimited use of his atm card. ms. beenthere is willing to pay only $5 for a checking account, but is willing to pay $9 for unlimited use of her atm card. assume that the bank can provide each of these services at zero marginal cost. refer to scenario 17-5. if the bank is unable to use tying, what is the profit-maximizing price to charge for a checking account

Which of the following results in an increase in the standard of living? a. an increase in unemployment pushes down the cost of production. b. wages go up to correct for the inflation of prices. c. income increases, enabling consumers to buy more goods and services. d. rising production costs drive up the price of goods and services.