Asked by
olokor wisdom
on Dec 11, 2024
Verified
Isabella buys a new camera for $80. She receives consumer surplus of $35 on her purchase if her willingness to pay is
A) $35.
B) $45.
C) $80.
D) $115.
Consumer Surplus
The difference in the total funds consumers are willing and able to disburse for a good or service compared to the actual expenditure.
Willingness to Pay
The maximum amount an individual is prepared to spend on a good or service to satisfy their needs or desires.
Camera
A device that records or captures images, which can be stored, viewed directly, or transmitted to another location.
- Determine and apprehend the concept of consumer surplus, which highlights the discrepancy between what consumers are prepared to pay and the actual cost.
Verified Answer
JM
Learning Objectives
- Determine and apprehend the concept of consumer surplus, which highlights the discrepancy between what consumers are prepared to pay and the actual cost.