Question 1 The difference between the hichest price a consumer is willing to pay

Question

Question 1 The difference between the hichest price a consumer is willing to pay for a good and the market price the consumer actually pays is calledt D Question 2 Paul soes to SportsMania to buy a new bennis racquet. He is wiling to pay $200 for a new racouet but he buys one on Pauls consumer surplus from the purchaneh $325 $125 575 $200 DQuestion 3 buys a new GPS syite for $250 She receives consumer surplus of $75 from the purchse How much does Lucinds acthualy value her GPS system 5325 $250 5175 Luonda Question 4 Type here to search

Explanation / Answer

Graphically speaking, consumer surplus is the area below the demand curve and above the market price. So technically it is difference between willingness to pay and the market price for a commodity for a consumer. Thus the answer for the first one is consumer surplus.

Given whats mentioned above, mathematically, Consumer Surplus = willingness to pay - market price. Using this, answers for the second and third options are $75 (200 - 125) and $325 (250+75). All the best ;)

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