Asked by
Jeanne Michael
on Dec 11, 2024
Verified
Refer to Table 3-1. If the table represents the willingness to pay of four buyers and the price of the product is $30, then their total consumer surplus is
A) $−10.
B) $−6.
C) $20.
D) $30.
Consumer Surplus
The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit to consumers.
Willingness to Pay
The maximum amount an individual is prepared to spend to acquire a good or service or avoid something undesirable.
- Compute and fathom consumer surplus, elucidating the disparity between the amount consumers are eager to pay and what they ultimately pay.
Verified Answer
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Learning Objectives
- Compute and fathom consumer surplus, elucidating the disparity between the amount consumers are eager to pay and what they ultimately pay.