Asked by
Guled Abdullahi
on Dec 11, 2024
Verified
Jamal buys a new jacket for $50. If his willingness to pay is ____, he receives consumer surplus of $15 on his purchase
A) $15.
B) $35.
C) $50.
D) $65.
Willingness to Pay
The maximum amount an individual is prepared to expend on a good or service, reflecting the value they place on it.
Consumer Surplus
The discrepancy between the total sum consumers are prepared and capable of spending on a product or service and what they end up spending.
- Attain insight into the concept of consumer surplus and the procedure for its estimation.
Verified Answer
DS
Learning Objectives
- Attain insight into the concept of consumer surplus and the procedure for its estimation.