Asked by Giselle Gradilla on May 05, 2024
Verified
If the most someone is willing to pay for an airline ticket to Las Vegas is $300 and the market price of the ticket is $200, then this buyer will get consumer surplus of
A) $100.
B) $200.
C) $300.
D) $500.
Consumer Surplus
The difference between what consumers are willing to pay and what they actually pay.
Market Price
The current price at which a good or service can be bought or sold, determined by the forces of supply and demand.
- Understand the concept of consumer surplus and how it is calculated.
Verified Answer
JZ
Jessica ZaragozaMay 07, 2024
Final Answer :
A
Explanation :
Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay. In this case, it's $300 - $200 = $100.
Learning Objectives
- Understand the concept of consumer surplus and how it is calculated.