Asked by
Zhane Collins
on Nov 30, 2024
Verified
If the Santiago family,which pays a charge of one cent a gallon,uses about 1,200 gallons of water a month,what is the most accurate statement we can make about their consumer surplus?
A) They definitely enjoy a consumer surplus.
B) They may or may not enjoy a consumer surplus.
C) They definitely do not enjoy a consumer surplus.
Consumer Surplus
Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.
- Absorb the fundamentals of consumer surplus and the ways to compute its value in varying situations.
Verified Answer
AH
Learning Objectives
- Absorb the fundamentals of consumer surplus and the ways to compute its value in varying situations.