Asked by
Shaiday Thomas
on Nov 17, 2024
Verified
Consumer surplus can be measured as the area between the demand curve and the supply curve.
Demand Curve
A graphical representation showing the relationship between the quantity of a good consumers are willing and able to purchase and its price.
Supply Curve
A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to offer for sale.
Consumer Surplus
The imbalance between the funds consumers are willing to dedicate to a good or service and the funds they actually dedicate.
- Apprehend the idea and calculation of consumer surplus.
- Grasp the difference between consumer and producer surplus.
Verified Answer
BA
Learning Objectives
- Apprehend the idea and calculation of consumer surplus.
- Grasp the difference between consumer and producer surplus.