Consumer Surplus Is

question 49

Multiple Choice

Consumer surplus is

• A) the difference between the maximum a person is willing to pay and current market price.
• B) the difference between current market price and full costs of production for the firm.
• C) the difference between the maximum a person is willing to pay and full costs of productions for the firm.
• D) current market price.

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Definitions:

Backward Bending

A labor supply curve that bends backward at higher wage rates, indicating that individuals may choose to work fewer hours as their income increases.

Marginal Utility

The additional satisfaction or utility that a consumer derives from consuming an additional unit of a good or service.

Price of Apple

The cost at which an apple, as a fruit or as a company's stock (Apple Inc.), can be purchased, depending on context.

Price of Orange

Refers to the cost to purchase a single unit or a specified amount of oranges in a given market.