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_____________ is defined as the difference between what the consumer is willing to pay for a product and what he actually pays?
- a)Consumer surplus
- b)Price gap
- c)Consumer burden
- d)Optimum price
Correct answer is option 'A'. Can you explain this answer?
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_____________ is defined as the difference between what the consumer i...
The consumer surplus is the difference between the highest price a consumer is willing to pay and the actual market price of the good. The producer surplus is the difference between the market price and the lowest price a producer would be willing to accept. For producers, a surplus can be thought of as profit, because producers usually don't want to produce at a loss. The two together create an economic surplus.
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_____________ is defined as the difference between what the consumer i...
Answer:
Consumer surplus is the difference between the maximum price a consumer is willing to pay for a product or service and the actual price they pay for it. It is a measure of the consumer's benefit or gain from purchasing the product or service.
Explanation:
Consumer surplus is a critical concept in microeconomics, and it helps us understand the behavior of consumers and producers in a market economy. It is usually represented graphically as the area between the demand curve and the market price. The following are the key points to understand the concept of consumer surplus:
1. Willingness to pay: Consumers have a maximum price that they are willing to pay for a product or service. This is determined by factors such as their income, the availability of substitutes, and their preferences.
2. Market price: The market price is the price at which a product or service is sold in the market. This price is determined by the interaction of demand and supply.
3. Consumer surplus: Consumer surplus is the difference between the maximum price a consumer is willing to pay for a product or service and the actual price they pay for it. It represents the benefit or gain that consumers receive from purchasing the product or service.
4. Importance: Consumer surplus is an essential concept in microeconomics because it helps us understand how consumers behave in a market economy. It also helps us understand the impact of changes in prices and other factors on consumer behavior.
In conclusion, consumer surplus is an important concept in microeconomics that helps us understand the behavior of consumers and producers in a market economy. It represents the benefit or gain that consumers receive from purchasing a product or service and is determined by the difference between the maximum price a consumer is willing to pay and the actual market price.
Consumer surplus is the difference between the maximum price a consumer is willing to pay for a product or service and the actual price they pay for it. It is a measure of the consumer's benefit or gain from purchasing the product or service.
Explanation:
Consumer surplus is a critical concept in microeconomics, and it helps us understand the behavior of consumers and producers in a market economy. It is usually represented graphically as the area between the demand curve and the market price. The following are the key points to understand the concept of consumer surplus:
1. Willingness to pay: Consumers have a maximum price that they are willing to pay for a product or service. This is determined by factors such as their income, the availability of substitutes, and their preferences.
2. Market price: The market price is the price at which a product or service is sold in the market. This price is determined by the interaction of demand and supply.
3. Consumer surplus: Consumer surplus is the difference between the maximum price a consumer is willing to pay for a product or service and the actual price they pay for it. It represents the benefit or gain that consumers receive from purchasing the product or service.
4. Importance: Consumer surplus is an essential concept in microeconomics because it helps us understand how consumers behave in a market economy. It also helps us understand the impact of changes in prices and other factors on consumer behavior.
In conclusion, consumer surplus is an important concept in microeconomics that helps us understand the behavior of consumers and producers in a market economy. It represents the benefit or gain that consumers receive from purchasing a product or service and is determined by the difference between the maximum price a consumer is willing to pay and the actual market price.
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_____________ is defined as the difference between what the consumer i...
The excess of price which a person would be willing to pay rather than go without the thing over that which he actually does pay is the economic measure of this surplus of satisfaction it may be called as consumer surplus
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_____________ is defined as the difference between what the consumer is willing to pay for a product and what he actually pays?a)Consumer surplusb)Price gapc)Consumer burdend)Optimum priceCorrect answer is option 'A'. Can you explain this answer?
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