Consumer surplus: a. is the difference between the maximum prices consumers are willing to pay...
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. is the difference between the maximum prices consumers are willing to pay for a produce 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
Minimum willingness to accept:
A producer ready to sell output at a minimum willingness to accept which is the marginal cost of the product. It also shows the supply curve of the producer where at each minimum acceptable price the quantity the producer wants to sell is shown.
Answer and Explanation: 1
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Consumer Surplus: Definition, Formula & Examples
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Chapter 7 / Lesson 6
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Learn the consumer surplus definition and see how it is determined by the people purchasing the product. Study consumer surplus examples using its formula.
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