Asked by Zachary Zamborelli on May 06, 2024
Verified
The difference between the maximum a person is willing to pay and current market price is known as
A) consumer surplus.
B) producer surplus.
C) market surplus.
D) nonprice surplus.
Consumer Surplus
The gap between the price consumers are prepared to pay for a product or service and the actual amount they spend on it.
Market Price
The market rate for buying or selling an asset or service in a public trading environment.
- Apprehend the theory of consumer surplus and the methodology for its determination.
Verified Answer
YK
Yasmin KhaleelMay 13, 2024
Final Answer :
A
Explanation :
Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good or service and the actual market price they pay.
Learning Objectives
- Apprehend the theory of consumer surplus and the methodology for its determination.