Asked by
Brandon Richardson
on Nov 17, 2024
Verified
In order to calculate consumer surplus in a market, we need to know willingness to pay and price.
Consumer Surplus
The gap between the total price consumers are ready and able to spend on a good or service and what they actually spend.
Willingness To Pay
The maximum amount an individual is prepared to spend to acquire a good or service.
- Comprehend the theory and quantification of consumer surplus.
Verified Answer
BG
Learning Objectives
- Comprehend the theory and quantification of consumer surplus.