Asked by Ariah Scales on May 01, 2024
Verified
Consumer surplus is
A) the difference between the maximum a person is willing to pay and current market price.
B) the difference between current market price and full costs of production for the firm.
C) the difference between the maximum a person is willing to pay and full costs of productions for the firm.
D) current market price.
Consumer Surplus
the difference between what consumers are willing to pay for a good or service and what they actually pay.
Market Price
The price at which a product or service is sold in the open market, determined by supply and demand.
Willing To Pay
The maximum amount a consumer is prepared to spend on a good or service.
- Fathom the link between the price in the market, each person's willingness to pay, and the consumer excess.
Verified Answer
EL
Emanuel LopezMay 01, 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 market price they pay.
Learning Objectives
- Fathom the link between the price in the market, each person's willingness to pay, and the consumer excess.