Marketers Know That, Compared to High School Graduates Who Are

question 49

Multiple Choice

Marketers know that, compared to high school graduates who are working full time, college students

• A)will earn less over their working lifetime.
• B)spend their disposable dollars differently.
• C)are less likely to buy textbooks.
• D)have almost identical spending patterns.
• E)are more likely to drink beer and less likely to drink wine.

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Definitions:

Consumer Surplus

The differential between the overall amount consumers are willing and financially prepared to spend on a good or service, and what they end up spending.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, essentially the extra benefit to producers from selling at the market price.

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or a service is not achieved or is unobtainable.

Producer Surplus

The difference between the amount that producers are willing to accept for a good or service and the actual amount they receive.