If a consumer is willing and able to pay $90 for a particular good but only has to pay $76, what...
Question:
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?
Consumer surplus:
The area of the triangle between the demand curve, the vertical axis, and the price line is basically the consumer surplus or the gains of the consumer when purchasing that respective product or the service. Mathematically expressed, consumer surplus is the willingness to pay less the price that the consumer has actually paid.
Answer and Explanation: 1
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View this answerThe consumer surplus can be calculated using the formula stated below:
{eq}\text{Consumer surplus}=\text{Willingness to pay}-\text{Market...
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Chapter 7 / Lesson 6Learn the consumer surplus definition and see how it is determined by the people purchasing the product. Study consumer surplus examples using its formula.