"Consumer Surplus" Is

question 57

Multiple Choice

"Consumer surplus" is

• A)the difference between the price customers expect to pay, and the price they would have been willing to pay.
• B)the total of all the differences between the price each customer actually pays and the maximum price they would have been willing to pay, all other things being equal.
• C)the difference between the costs incurred in serving customers, and the revenue that they generate.
• D)the amount of extra product consumers buy because of the difference between the normal price and a special offer price.

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Definitions:

Opportunity Cost

Missing potential improvements from other opportunities when a particular alternative is chosen.

Car Payments

Regular payments made towards the financing of a vehicle purchase, usually on a monthly basis.

Car Payments

Monthly payments made towards the loan taken out to purchase a vehicle.

Standard Of Living

A measure of the wealth, comfort, material goods, and necessities available to a certain socioeconomic class or a geographic area.