$250. $350. $500. $600. $250. $350. $500. $600. Consumer surplus is: the differe
ID: 1099653 • Letter: #
Question
$250.
$350.
$500.
$600.
$250.
$350.
$500.
$600.
Consumer surplus is:
the difference between the market price a consumer pays for a good and its production cost.
the difference between the maximum price a consumer is willing to pay for a good and the price the consumer can afford to pay.
the difference between the maximum price a consumer is willing to pay for a good and its market price.
the difference between the minimum price a consumer is willing to pay for a good and its market price.
$250.
$350.
$500.
$600.
Explanation / Answer
Q1 ) The concumer Surplus is the area of the top left traignle in the graph = 1/2 * 100 * (12-7) = $350
Q2) (a)the difference between the market price a consumer pays for a good and its production cost.
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