If a consumer is willing and able to pay $60 for a particular good but only has to pay $45, what...
Question:
If a consumer is willing and able to pay $60 for a particular good but only has to pay $45, what is the consumer surplus?
Consumer Surplus
In economics, the consumer surplus is the economic welfare the buyers get for buying a product or a service that is priced below their reservation price or the willingness to pay.
Answer and Explanation: 1
Become a Study.com member to unlock this answer! Create your account
View this answer
We will calculate the consumer surplus as follows:
{eq}\text{ Consumer surplus}=\text{ Willingness to pay - Market price} {/eq}
If a consumer is...
See full answer below.
Ask a question
Our experts can answer your tough homework and study questions.
Ask a question Ask a questionSearch Answers
Learn more about this topic:
Get access to this video and our entire Q&A library
Consumer Surplus: Definition, Formula & Examples
from
Chapter 7 / Lesson 6
9.7K
Learn the consumer surplus definition and see how it is determined by the people purchasing the product. Study consumer surplus examples using its formula.
Related to this Question
- If a consumer is willing and able to pay $8 for a particular good but only has to pay $6, what is the consumer surplus?
- If a consumer is willing and able to pay $30 for a particular good but only has to pay $21, what is the consumer surplus?
- If a consumer is willing and able to pay $15 for a particular good but only has to pay $12, what is the consumer surplus?
- If a consumer is willing and able to pay $25 for a particular good but only has to pay $20, what is the consumer surplus?
- If a consumer is willing and able to pay $95 for a particular good but only has to pay $65, what is the consumer surplus?
- If a consumer is willing and able to pay $10 for a particular good but only has to pay $6, what is the consumer surplus?
- If a consumer is willing and able to pay $60 for a particular good but only has to pay $52, what is the consumer surplus?
- If a consumer is willing and able to pay $175 for a particular good but only has to pay $120, what is the consumer surplus?
- If a consumer is willing and able to pay $24 for a particular good but only has to pay $18, what is the consumer surplus?
- If a consumer is willing and able to pay $280 for a particular good but only has to pay $200, what is the consumer surplus?
- If a consumer is willing and able to pay $100 for a particular good but only has to pay $85, what is the consumer surplus?
- If a consumer is willing and able to pay $150 for a particular good but only has to pay $125, what is the consumer surplus?
- If a consumer is willing and able to pay $35 for a particular good but only has to pay $24, what is the consumer surplus?
- If a consumer is willing and able to pay $28 for a particular good but only has to pay $22, what is the consumer surplus?
- If a consumer is willing and able to pay $125 for a particular good but only has to pay $90, what is the consumer surplus?
- If a consumer is willing and able to pay $40 for a particular good but only has to pay $33, what is the consumer surplus?
- If a consumer is willing and able to pay $300 for a particular good but only has to pay $225, what is the consumer surplus?
- If a consumer is willing and able to pay $45 for a particular good but only has to pay $36, what is the consumer surplus?
- If a consumer is willing and able to pay $50 for a particular good but only has to pay $36, what is the consumer surplus?
- If a consumer is willing and able to pay $250 for a particular good but only has to pay $180, what is the consumer surplus?
- If a consumer is willing and able to pay $90 for a particular good but only has to pay $76, what is the consumer surplus?
- If a consumer is willing and able to pay $30 for a particular good but only has to pay $26, what is the consumer surplus?
- Consumer surplus is: a. the difference between what producers are willing to accept for a good and what they actually receive. b. the difference between what producers actually pay for a good and what they are willing to pay. c. the difference between wha
- The difference between what the consumer is willing to pay and what the consumer must pay is known as: a. Total surplus. b. Consumer equilibrium. c. Producer surplus. d. Deadweight loss. e. Consumer surplus.
- What is another name for the difference between the price that consumers are willing to pay for a good and a lower price that they may actually have to pay? a) profit. b) revenue. c) consumer utility. d) consumer surplus.
- Which of the following best defines supply? A. The amount of a good that consumers want to buy at different income levels. B. The amount of a good that consumers are willing and able to buy at each possible price, other things constant. C. The amount o
- The value that consumers get (from consuming a product) over and above what they actually paid for the product is called A. consumer utility. B. consumption expenditures. C. consumer surplus. D. consumer demand.
- Define what is a consumer surplus what is its purpose?
- Suppose you buy a new backpack for $30. If your consumer surplus is $15, what was your willingness to pay?
- What is a consumer surplus?
- What is consumer surplus?
- What is Consumer's Surplus?
- Suppose you buy a new car for $14,500. If your consumer surplus is $3,500, what was your willingness to pay?
- Suppose you buy a new desk for $120. If your consumer surplus is $30, what was your willingness to pay?
- What is the definition of consumer surplus? Provide two examples of consumer surplus for a specific purchase made in the past.
- Stacy bought a new car for $11,500. If she was willing to pay $14,000, what was her consumer surplus?
- What is the consumer surplus in economics?
- What is producer and consumer surplus?
- Define consumer surplus.
- What are consumer surplus and producer surplus?
- How is consumer surplus defined and what does it attempt to measure?
- Define consumer surplus and producer surplus. What is meant by economic efficiency, and how does it relate to the gains of consumers and producers?
- How does the demand curve represent the benefits consumers receive from participating in a market and what else must be considered to determine consumer surplus?
- Define consumer surplus and producer surplus. What purposes do they serve?
- What is total surplus? Refer to the cost of production and consumers' willingness to pay in your answer.
- By consumer surplus, what do economists mean?
- What do we call the utility for consumers by being able to purchase a product for a price that is less than the highest price they would be willing to pay?
- Define consumer and producer surplus.
- What is consumer surplus? What happens to consumer surplus as the price level falls?
- What goods will consumers demand more when their income rises?
- If a consumer's income is $300, the price of good X is $3, and the price of good Y is $6, then what is the algebraic expression for the consumer's budget constraint?
- Steve buys a new lawnmower for $180. If he was willing to pay $250, what is his consumer surplus?
- Suppose you buy an iPod for $100. If your consumer surplus is $30, what was your willingness to pay?
- How are the buyers' willingness to pay, consumer surplus, and the demand curve related?
- How are buyers' willingness to pay, consumer surplus, and the demand curve related?
- What do consumers look for when the price of a good is too high?
- Define what a good is for which demand increases as income increases.
- Which of the following is a determinant of market supply? A) Consumers' income. B) Consumer expectations. C) Available technology. D) Consumers' desire for the good.
- What should a consumer do to attain equilibrium if they have not already?
- Define consumer surplus, producer surplus, and social surplus. Then give a market situation where each type of surplus would be beneficial and name who would benefit.
- What is meant by the term utility? a. price of a good b. necessity of a good c. number of goods a consumer has d. usefulness of a good in relation to its scarcity e. pleasure, or satisfaction, a consumer receives upon consuming a good
- Explain why consumer surplus is the appropriate measure of consumer welfare.
- In addition to the demand curve, what else must be considered to determine consumer surplus?
- Explain how to apply the economic term "consumer surplus" to the consumer market.
- Consider the problem of a rational consumer with an experienced utility function given by 10 - x + m. Let q denote the market price of good x. What is the expression for the consumer surplus if the c
- Define consumers surplus and give an example of buyer's surplus generated by the Oilers in Edmond. Explain how consumer surplus could justify subsides to professional sports teams. Edmond will bring w
- The demand for a good is P=200-5Q. The supply is P=50+10Q. What is producer surplus? Demonstrate all your work.
- What price ceiling maximizes Consumer Surplus given that Qd= 100-P and Qs=P?
- What will a consumer do, in terms of optimal consumption and leisure, if the real wage falls?
- Define consumer surplus and give an example of buyers surplus generated by a new team in a town. Explain how consumer surplus could justify subsidies to professional sports teams.
- What needs to be done to maintain and/or to increase the current rate of consumer spending?
- What are the importance of consumer and producer surplus?
- What are some clues that a consumer could identify to know whether a producer has a surplus?
- If Tom pays $18 for a textbook and receives a consumer surplus of $7, what was his willingness to pay?
- Describe aggregate demand and marginal willingness to pay for public goods.
- What is the origin of both consumer surplus and producer surplus?
- Which one of the following is a determinant of supply? a. Producer expectation b. Consumer income c. Consumer taste d. Consumer expectation
- What is the difference between consumer surplus and producer surplus?
- Which of the following is something that markets cannot do? a. Provide unlimited goods and services b. Determine the equilibrium quantity of a good or service c. Make buyers and sellers better off
- What is a good, if the demand for a good decreases as income decreases?
- How can consumers deal with economic surplus?
- What is a good for which demand increases as income increases?
- Which of the following best defines supply? A. The amount of a good that is produced at the least possible cost, other things constant B. The amount of a good that producers are willing and able to sell at each possible price, other things constant C.
- Must consumers' surplus equal producers' surplus at the equilibrium price? Explain.
- Describe how a consumer surplus might exist in a product market. Provide specific numerical examples/data in your answer.
- What is the origin of both consumer surplus and producer surplus? How do properly functioning markets maximize consumer and producer surplus while optimally allocating resources?
- Assume that the income of consumers changes by 10%, and as a result, the quantity demanded for the good changes by 8%. What is the income elasticity of demand for the good? What does this mean for the company?
- What is consumer equilibrium in economics?
- Which of the following is the best estimate of the consumer surplus in this market? A. $2 B. $1.25 C. $2.25 D. $3.75
- Which of the following is something that markets cannot do? A. Provide unlimited goods and services B. Determine the equilibrium quantity of a good or service C. Make buyers and sellers better off D. Determine the equilibrium price of a good or service
- As a consumer, which market do you prefer? Explain your reasoning.
- What is the difference between the concepts of consumer surplus and producer surplus?
- What is the term for a good for which demand increases as income increases?
- What is the relationship between perfect first-degree price discrimination and consumer surplus?
- Suppose a competitive industry expands and higher wages must be paid to attract more workers. What will the long-run supply curve for this industry look like?
- What are some consumer products that its price doesn't reflect its supply demand curve?
- Explain why managers are interested in the concept of consumer surplus?
- What happens to consumer surplus when the supply of a good decreases and the demand for the good remains unchanged?
- Explain how increases in consumer income changes demand for both normal and inferior goods.
- If the supply of a good declines, what happens to the consumer's surplus? Explain your answer and represent it diagrammatically.
Explore our homework questions and answers library
Browse
by subject