Consumer surplus is the difference between the maximum amount a buyer is willing to pay for a product and the price he actually pays
Indicate whether the statement is true or false
TRUE
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Which of the following is an example of collectivization costs?
A) Isabel knows that other neighbors' sleep patterns must also be affected by the howling dogs in her neighborhood and sets out to find those neighbors. B) Isabel is bound and determined to to find out which of her neighbors owns the howling dogs that are preventing her from getting a full night's slee
Suppose a successful advertising campaign increases the demand for Nike shoes. Which would tend to occur?
A) The demand curve for Nikes would shift to the right. B) The quantity supplied of Nikes would increase. C) The price of Nikes would rise. D) All of the above.
In the above figure, the Lorenz curve for income is shown. If the data used are from the United States, and the U.S. Lorenz curve for wealth was added to the diagram, it would be
A) further from the line of equality than the Lorenz curve for income. B) closer to the line of equality than the Lorenz curve for income. C) above the line of equality. D) the same as the Lorenz curve for income.
Answer the following questions true (T) or false (F)
1. A bumper corn crop will increase both producer and consumer surplus. 2. A market shortage occurs in a market when the quantity supplied at a given price exceeds the quantity demanded. 3. A market surplus occurs in a market when the quantity supplied at a given price is greater than the quantity demanded.