Asked by
Janey Lituchy
on Dec 11, 2024
Verified
Suppose Katie, Kendra, and Kristen each purchase a particular type of cell phone at a price of $80. Katie's willingness to pay was $100, Kendra's willingness to pay was $95, and Kristen's willingness to pay was $80. Consumer surplus for the three individuals is
A) $15.
B) $20.
C) $35.
D) $80.
Consumer Surplus
The contrast between what buyers are willing to offer for a good or service and the amount they actually spend.
Willingness to Pay
The maximum amount an individual is prepared to expend on a good or service to acquire it.
Cell Phone
A portable telephone that uses wireless technology to send and receive calls and data.
- Evaluate and comprehend the notion of consumer surplus, indicating the divergence between the desired payment by consumers and the true price.
Verified Answer
CR
Learning Objectives
- Evaluate and comprehend the notion of consumer surplus, indicating the divergence between the desired payment by consumers and the true price.