Asked by
Brittany Thompson
on Dec 11, 2024
Verified
Which of the following would be the best example of consumer surplus?
A) Shaniqua does not get cell-phone service because she feels that it is worth less than the $30 a month fee.
B) Nicolas pays $8 for a haircut that is worth $10 to him.
C) Diego buys a house for $104,000, the maximum amount that he would be willing to pay for it.
D) Isabella purchases a book for $20 and uses a credit card to pay for it.
Consumer Surplus
The difference between the maximum price consumers are willing to pay and the price they actually pay. It is the net gain derived by the buyers of the good.
Cell-Phone Service
A service provided by telecommunications companies that enables mobile phone users to make and receive calls, texts, and use data.
- Understand the concept of consumer surplus and how it can be affected by price changes.
Verified Answer
FV
Learning Objectives
- Understand the concept of consumer surplus and how it can be affected by price changes.
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