After Trying on a Dress, a Consumer Assesses It to Be

question 17

Multiple Choice

After trying on a dress, a consumer assesses it to be worth a maximum of $100 and is willing to pay that amount for the dress. However, the dress was priced at $80. What is the amount, $100, referred to as?

• A) the producer surplus
• B) the firm's cost (C) in manufacturing the dress
• C) the consumer surplus
• D) the value (V) the consumer attaches to the dress

---

Definitions:

Substitute Products

Goods or services that can be used in place of each other; when the price of one increases, demand for the substitute is likely to increase.

Electronic Textbooks

Digital versions of textbooks that can be accessed on electronic devices, offering interactive and accessible features for learning.

Prices Rise

A situation in which the cost of goods and services increases, affecting purchasing power.

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used to isolate the effect of one variable in economic analysis.