Asked by Johnny Gomez on May 26, 2024
Verified
Consumer surplus can be measured as the area between the demand curve and the equilibrium price.
Consumer Surplus
The split between the comprehensive sum consumers are prepared to offer for a good or service and the sum they truly pay.
Demand Curve
A graphical representation that illustrates the relationship between the price of a good and the quantity of it that consumers are willing to buy.
Equilibrium Price
The price at which the quantity of goods suppliers are willing to sell equals the quantity consumers are willing to buy, leading to a balance of demand and supply.
- Understand the concept and measurement of consumer surplus.
Verified Answer
DO
doris okoawohMay 29, 2024
Final Answer :
True
Explanation :
Consumer surplus is the difference between what consumers are willing to pay for a good or service and what they actually pay. It is represented graphically as the area between the demand curve and the equilibrium price, above the price level.
Learning Objectives
- Understand the concept and measurement of consumer surplus.