Asked by
Daven Babero
on Nov 30, 2024
Verified
Given the demand curve in this graph,if price were $1.00,how much is consumer surplus?
A) $0
B) $1.50
C) $5.00
D) $10.50
Consumer Surplus
The discrepancy between what consumers are prepared and capable of paying for a product or service and the actual amount they end up paying.
Demand Curve
A graph showing the relationship between the price of a good and the quantity of that good consumers are willing and able to purchase at different prices.
- Understand demand curves and compute consumer surplus using graphical interpretations.
- Understand the principle of consumer surplus and the methods by which it is calculated in various situations.
Verified Answer
YV
Learning Objectives
- Understand demand curves and compute consumer surplus using graphical interpretations.
- Understand the principle of consumer surplus and the methods by which it is calculated in various situations.