Asked by Jaqueline Martinez on Jun 03, 2024
Verified
Refer to Scenario 13.1. At your negotiated price your consumer surplus is:
A) $50.
B) $200.
C) $250.
D) $300.
Consumer Surplus
The difference between what consumers are willing to pay for a good or service versus what they actually pay.
Negotiated Price
The outcome of a bargaining process between two or more parties, where the final price of a good or service is agreed upon.
- Comprehend the effects of bargained pricing on the surplus of consumers and producers.
Verified Answer
ZK
Zybrea KnightJun 04, 2024
Final Answer :
C
Explanation :
Consumer surplus is the difference between the maximum price a consumer is willing to pay for a product and the actual price paid. In this scenario, the maximum price that Jane is willing to pay for the laptop is $800, but she negotiated and paid only $550. Therefore, her consumer surplus is $800 - $550 = $250.
Learning Objectives
- Comprehend the effects of bargained pricing on the surplus of consumers and producers.