Consumer Surplus Measures

question 156

Multiple Choice

Consumer surplus measures:

• A) the extra amount that a consumer must pay to obtain a marginal unit of a good or service.
• B) the excess demand that consumers have when a price ceiling holds prices below their equilibrium.
• C) the benefit that consumers receive from a good or service beyond what they pay.
• D) gain or loss to consumers from price fixing.

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Definitions:

Borrowed

The state of having taken something on loan, often with the obligation to return it or repay an equivalent amount.

Annual Rate

The interest rate for a whole year, as opposed to just a monthly or daily rate.

Days

A unit of time equivalent to 24 hours, often used to measure durations or intervals.

Grow

To grow or expand in size, volume, or intensity as time progresses.