Consumer Surplus

question 70

Multiple Choice

Consumer surplus

• A)is positive for all but the last unit purchased.
• B)for a particular unit of consumption is computed by taking the difference between demand price and market price.
• C)is the area below demand and above market price over all the units consumed.
• D)added to producer surplus provides a measure of the net gain to society from the production and consumption of the good.
• E)all of the above

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Definitions:

Service Retailers

Businesses that provide services rather than tangible goods to customers.

Central Wholesale

A distribution method where products are sold from a central location to retailers or other wholesale entities, often in large quantities.

Bundle Marketing

A strategy where multiple products or services are packaged together and sold at a single price, often creating perceived value for the customer.

Fast Fashion

A business model in the apparel industry that focuses on rapidly producing high volumes of clothing to keep up with the latest fashion trends, often criticized for environmental and ethical issues.