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.

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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.

Willingness to Pay:

In a market, willingness to pay refers to the maximum monetary value of a product that an individual can pay for that specific product. It explains the value of a product to a consumer. If the price is above the willingness to pay, an individual will not buy the product because his benefits or satisfaction is lower than the cost.

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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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In what products or services is the marginal cost of a business smaller, compared to the marginal price of a consumer?

What is another name for the difference between the price that consumers are willing to pay for a...

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Willingness to Pay:

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