When Customers Enter a Supermarket and Select Their Favorite Brand

question 61

True/False

When customers enter a supermarket and select their favorite brand of laundry detergent,they are exercising their right to freedom of choice.

---

Definitions:

Consumer Surplus

The discrepancy between the price consumers are prepared to pay for a product or service and the price they end up paying.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service versus what they actually receive.

Subsidies

Financial support provided by governments to individuals, businesses, or institutions to promote certain activities deemed beneficial.

Higher-Valued Uses

The allocation of resources or goods to their most profitable or beneficial applications, typically where they contribute the most to welfare or profitability.