Asked by Zachary Zamborelli on Apr 29, 2024
Verified
If someone is willing to pay $500 to go to the Super Bowl but can buy a ticket for $300, they will get $200 in consumer surplus.
Consumer Surplus
The variance between the total price consumers are ready and able to fork over for a good or service and the sum they ultimately pay.
- Gain an understanding of the idea behind consumer surplus and the process for its computation.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
True
Explanation :
Consumer surplus is the difference between what a consumer is willing to pay for a good or service and what they actually pay. In this case, the consumer is willing to pay $500 but only pays $300, resulting in a consumer surplus of $200.
Learning Objectives
- Gain an understanding of the idea behind consumer surplus and the process for its computation.