Asked by Perla Arceo-Valencia on Apr 29, 2024
Verified
If the most someone is willing to pay for ticket to see their favorite team is $100 and the market price of the ticket is $35, then this buyer will get consumer surplus of
A) 1 ticket.
B) $35.
C) $65.
D) $100.
Consumer Surplus
The discrepancy between what consumers are prepared and capable of paying for a product or service and what they end up actually paying.
Willing To Pay
The maximum amount a consumer is prepared to spend on a good or service, reflecting the perceived value or utility gained from the purchase.
Ticket
A token or voucher that entitles the holder to admission to an event, activity, or service.
- Understand the relationship between market price, individual willingness to pay, and consumer surplus.
Verified Answer
AC
Alvira Chayne FloresMay 01, 2024
Final Answer :
C
Explanation :
Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay. In this case, it's $100 - $35 = $65.
Learning Objectives
- Understand the relationship between market price, individual willingness to pay, and consumer surplus.