QUESTION1 A simple way to measure the total happiness that John gets from a part
ID: 1141446 • Letter: Q
Question
QUESTION1 A simple way to measure the total happiness that John gets from a particular shirt is to: O a. Measure the amount of money that he actually paid for the shirt. This is John's willingness to pay for the shirt. re tha af tst y frt O c. Measure the maximum amount of money that he would pay for the shirt minus what he actually paid for the shirt. This is John's consumer surplus from the shirt d. Find out the maximum amount that each member of a random sample of people would pay for the shirt and then take the average. QUESTION2 You've just bought a shirt for $10.99. But you like the shirt enough to have paid as much as $15.00 if necessary. Therefore, you realize that you got a net benefit of $4.01 (in the sense that you paid $10.99 for something that's worth $15.00 to you). The net benefit that a buyer gets from a purchase is called: a. Willingness to pay b. Consumer surplus .Producer surplus d. Total surplusExplanation / Answer
Solution:
1. C is the correct option from the consumer surplus concept point of view