Asked by
Farshid Hasnat
on Oct 08, 2024
Verified
Consumer surplus:
A) is the difference between the maximum prices consumers are willing to pay for a product and the lower equilibrium price.
B) the difference between the maximum prices consumers are willing to pay for a product and the minimum prices producers are willing to accept.
C) the difference between the minimum prices producers are willing to accept for a product and the higher equilibrium price.
D) rises as equilibrium price rises.
Consumer Surplus
The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.
Equilibrium Price
The market price at which the quantity of goods supplied is equal to the quantity of goods demanded, resulting in no excess supply or demand.
Willing To Pay
The maximum amount a consumer is prepared to spend on a good or service, reflecting their valuation and demand.
- Learn about the fundamentals of producer and consumer surplus.
Verified Answer
MG
Learning Objectives
- Learn about the fundamentals of producer and consumer surplus.