Consumer's Surplus Is a Measure of How Much

question 1

Multiple Choice

Consumer's surplus is a measure of how much

• A)less than his income a consumer spends on goods.
• B)more utility a consumer receives from his purchases than he has to pay for them.
• C)a consumer's marginal utility differs from his total utility.
• D)a change in price induces a consumer to substitute other goods.

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Definitions:

Equal Bargaining Power

The situation in which all parties involved in a negotiation or agreement have similar negotiating strength and no one side has undue influence over the other.

Quasi Contract

An obligation imposed by law to prevent unjust enrichment, even though the parties involved did not enter into a contractual agreement.

Restitution

A legal principle requiring a party to return or compensate for any loss or harm they have caused to another.

Oral Agrees

Agreements or contracts made through spoken communication rather than written, subject to certain legal limitations.