Consumer Surplus

question 80

Multiple Choice

Consumer surplus

• A) is positive for all but the last unit purchased.
• B) for a particular unit of consumption is computed by taking the difference between demand price and market price.
• C) for all units consumed is the area below demand and above market price over all the units consumed.
• D) added to producer surplus provides a measure of the net gain to society from the production and consumption of the good.
• E) all of the above

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Definitions:

Stereotypes

Oversimplified generalizations about a group of people, ignoring individual differences and based on assumptions rather than factual evidence.

Discrimination

The unfair treatment of people based on their race, age, or gender, leading to bias and discrimination.

Groupthink

A mental occurrence happening among a group where the need for consensus or conformity leads to unreasonable or ineffective decisions.

Foot-in-the-Door Technique

A persuasion strategy that involves getting a person to agree to a small request to increase the chances they will agree to a larger request later.