Table 7-1 -Refer to Table 7-1. If the Price of the Product

question 427

Multiple Choice

Table 7-1
-Refer to Table 7-1. If the price of the product is $110, then who would be willing to purchase the product?

• A)Calvin
• B)Calvin and Sam
• C)Calvin, Sam, and Andrew
• D)Calvin, Sam, Andrew, and Lori

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Definitions:

Consumer Surplus

Consumer surplus represents the discrepancy between the total price consumers are prepared and able to spend on a product or service and the actual amount they end up paying.

Marginal Utility

The additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.

Marginal Utility

Marginal utility represents the additional satisfaction or utility a consumer gains from consuming one more unit of a good or service.

Total Utility

The sum satisfaction or benefit that a consumer receives from consuming a particular quantity of goods or services.