Consumer Surplus

question 87

Multiple Choice

Consumer surplus:

• A) is the difference between the maximum prices consumers are willing to pay for a product and the lower equilibrium price.
• B) the difference between the maximum prices consumers are willing to pay for a product and the minimum prices producers are willing to accept.
• C) the difference between the minimum prices producers are willing to accept for a product and the higher equilibrium price.
• D) rises as equilibrium price rises.

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Definitions:

Microeconomics

The branch of economics that studies the behavior of individuals and businesses in making decisions on the allocation of limited resources.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision.

Positive Statements

Assertions about the world that are objective and can be tested by referring to the available evidence.

Value Judgments

Assessments or opinions based on personal values, ethics, or standards, rather than objective data.