Asked by David Oyenuga on May 12, 2024
Verified
Consumer surplus describes a situation in which there is excess quantity supplied.
Consumer Surplus
The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.
Excess Quantity
A situation where the supply of a product exceeds the demand for it.
- Familiarize oneself with the concept of consumer surplus and the procedures involved in calculating it.
Verified Answer
WJ
Winstin JosephMay 18, 2024
Final Answer :
False
Explanation :
Consumer surplus describes the difference between what consumers are willing to pay for a good or service and what they actually pay, not an excess quantity supplied.
Learning Objectives
- Familiarize oneself with the concept of consumer surplus and the procedures involved in calculating it.