What Is the Outcome If a Consumer Is Willing and Able

question 178

Multiple Choice

What is the outcome if a consumer is willing and able to pay $18.00 for a particular good but the price of the good is $20.00

• A)The consumer has a consumer surplus of $3.00.
• B)The consumer has a consumer surplus of $18.00
• C)The consumer will try to increase his/her willingness and ability to pay by earning more.
• D)The consumer will not purchase the good and will not have any consumer surplus.

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Definitions:

Equilibrium Price

The value at which the supply and demand for a good or service are equal, creating a balanced market scenario.

Equilibrium Quantity

The quantity of goods or services traded in a market at the equilibrium price, where supply equals demand.

Demand for Bottled Water

Refers to the consumer need or desire to purchase bottled water, influenced by factors like health concerns, convenience, and taste preferences.

Substitute Product

A product that can be used in place of another, fulfilling the same needs or desires.