Asked by
AC17UCS037 KABILAN
on Dec 11, 2024
Verified
Laqueta buys a new GPS device for her car for $135. She receives consumer surplus of $25 on her purchase if her willingness to pay is
A) $25.
B) $110.
C) $135.
D) $160.
Willingness to Pay
The maximum amount an individual is prepared to spend for a particular good or service.
Consumer Surplus
The gap between the aggregate amount that buyers are willing and able to allocate for a good or service and the total sum they really pay.
- Learn the concept of consumer surplus and the approach to determine its value.
Verified Answer
AM
Learning Objectives
- Learn the concept of consumer surplus and the approach to determine its value.