The difference between the highest price a consumer is willing to pay for a good
ID: 1138943 • Letter: T
Question
The difference between the highest price a consumer is willing to pay for a good and the market price the consumer actually pays is calles 0 the income effect consumer surplus producer surplus O the substitution effect Question 2 Paul goes to SportsMania to buy a new tennis racquet. He is willing to pay $200 for a new racquet, but he buys one on sale for $125 Paul's consumer surplus from the purchase is $325 $125 $75 $200 Question 3 Lucinda buys a new GPS system for $250. She receives consumer surplus of $75 from the purchase. How much does Lucinda actually value he $325 $250 $175 $75 D Question 4 Willingness to pay measures O the amount a sefer actually receives for a po d mirus the minimum amore the scler is vaig to accept for the good O the maximum price a buyer is willing to pay for a product minus the amount the buyer actually pays for a o searchExplanation / Answer
1. The difference between the highest price the consumer is willing to pay for a good and the market price the consumer actually pays is called Consumer surplus. So the correct option is B.
2. Pauls consumer surplus from the purchase is $ 75. So the correct option is C.
3. Lucinda buys a new GPS system for $ 250. She receives consumer surplus of $ 75 from the purchase. Lucinda values her purchase at $ 325. So the correct option is A.