Asked by Varuna Sharma on May 11, 2024
Verified
Consumer's surplus is another name for excess demand.
Consumer's Surplus
The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount that they actually pay.
Excess Demand
A situation where the quantity demanded of a good exceeds the quantity supplied at the current price.
- Comprehend the idea of consumer surplus and its sensitivity to variations in prices and income levels.
Verified Answer
AB
Alecia BlackwoodMay 13, 2024
Final Answer :
False
Explanation :
Consumer's surplus is the difference between the maximum price a consumer is willing to pay for a good or service and the actual price they pay. Excess demand refers to a situation where the quantity demanded of a good or service exceeds the quantity supplied at a given price, leading to a shortage.
Learning Objectives
- Comprehend the idea of consumer surplus and its sensitivity to variations in prices and income levels.