Which of the Following Is an Example of Consumer Surplus

question 78

Multiple Choice

Which of the following is an example of consumer surplus?

• A) Sue would have paid $15 for a new compact disc but paid only $10.
• B) Jose buys a hamburger for $2 and tells you he would not have paid a penny more.
• C) Mary buys a pad of paper for $2 and finds the same good at another store for $1.50.
• D) John believes the price he paid for his computer was too high.
• E) Anne finds a mountain bike for which she is willing to pay a maximum of $550 and the price of the bike is $600.

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Definitions:

Demand

The capacity of consumers to purchase a good or service, considering their willingness and financial ability, at diverse prices over an established period.

Economic Inefficiencies

Circumstances where resources are not optimally allocated, leading to waste or losses in potential value within an economy.

Product Variety

The assortment of different goods or services offered by a firm or market to cater to diverse consumer preferences.

Monopolistically Competitive

A marketplace configuration in which a wide variety of firms supply products that are analogous but not identical, thereby granting them a modicum of market influence.