Consumer surplus: A. is the difference between the maximum prices consumers are

Question

Consumer surplus:

A.

is the difference between the maximum prices consumers are willing to pay for a product and the lower equilibrium price.

B.

the difference between the maximum prices consumers are willing to pay for a product and the minimum prices producers are willing to accept.

C.

the difference between the minimum prices producers are willing to accept for a product and the higher equilibrium price.

D.

rises as equilibrium price rises.

A.

is the difference between the maximum prices consumers are willing to pay for a product and the lower equilibrium price.

Explanation / Answer

Ans is A

Consumer surplus is the difference between maximum willingness to pay and the actual pay i.e. Equilibrium price. It is the area below the demand curve and above equilibrium price line.

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.