One Way of Thinking of Consumer Surplus Might Be Described

question 33

Multiple Choice

One way of thinking of consumer surplus might be described as:

• A)the total value of the sum of the difference of all consumers' willingness to pay for an item relative to the actual cost of the item in the market.
• B)the excess amount that consumers earn relative to the poverty line.
• C)the level of satisfaction that consumers reach from consuming an item.
• D)the excess of consumer demand relative to supply.

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Definitions:

U.S. Residents

Individuals who live in the United States, including citizens, permanent residents, and long-term visitors.

Aggregate Demand

The amassed demand for all types of goods and services in an economic domain, set at a uniform price level across a certain time range.

Inventories

The goods and materials that a business holds with the purpose of resale or production in the future.

Wealth Effect

A behavioral economic theory suggesting that consumers spend more as the value of their assets rises, particularly visible in the increase in spending following a rise in home values or stock market portfolios.