Asked by Audriana Bridley on Jun 17, 2024
Verified
Consumer surplus measures the benefit to buyers of participating in a market.
Consumer Surplus
The variance between the total price consumers are willing to pay for a good or service and the actual price they pay.
Benefit
An advantage, gain, or positive outcome derived from a specific action, policy, or product.
Buyers
Entities or individuals who purchase goods or services for personal use, consumption, or investment.
- Absorb the framework and estimation of consumer surplus.
Verified Answer
DT
Diamond ThomasJun 19, 2024
Final Answer :
True
Explanation :
Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service (indicated by the demand curve) and the total amount that they actually do pay (i.e., the market price). It represents the benefit or surplus satisfaction that consumers receive from purchasing goods and services at a price lower than they are willing to pay.
Learning Objectives
- Absorb the framework and estimation of consumer surplus.