Asked by Nimah Siddiqui on Jul 22, 2024
Verified
Ashley bought a new pair of jeans.When she walked out of the store,she thought,"I got such a great deal;I would have paid $40 more for these jeans!" This BEST represents the concept of:
A) consumer surplus.
B) producer surplus.
C) total surplus.
D) equilibrium.
Consumer Surplus
The disparity in amounts between what is potentially spent by consumers and what is actually spent on a good or service.
- Develop an understanding of consumer surplus and the impact of price variations on it.
Verified Answer
RA
Rachida AugustineJul 23, 2024
Final Answer :
A
Explanation :
Consumer 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. In this case, Ashley values the jeans at $40 more than she actually paid, indicating that she received consumer surplus. The other options, producer surplus, total surplus, and equilibrium, do not accurately represent Ashley's situation.
Learning Objectives
- Develop an understanding of consumer surplus and the impact of price variations on it.
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