Asked by Julian Ortiz on Jun 26, 2024
Verified
If Darby values a soccer ball at $50, and she pays $40 for it, her consumer surplus is $10.
Consumer Surplus
The discrepancy between what consumers are prepared and can afford to pay for a product or service versus what they end up paying in reality.
- Familiarize oneself with the concept of willingness to pay, actual remittance, and the determination of surplus.
- Learn about the concept and assessment of consumer surplus.
Verified Answer
NT
Navneetkaur ThindJul 01, 2024
Final Answer :
True
Explanation :
Consumer surplus is the difference between what a consumer is willing to pay for a good and what the consumer actually pays. In this case, Darby is willing to pay $50 but only pays $40, so her consumer surplus is $50 - $40 = $10.
Learning Objectives
- Familiarize oneself with the concept of willingness to pay, actual remittance, and the determination of surplus.
- Learn about the concept and assessment of consumer surplus.