The distance between the demand curve and the price the consumer has to pay for a product (given quantity demanded) is referred to as:
A. market surplus.
B. producer surplus.
C. consumer surplus.
D. market shortage.
Answer: C
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A movement along the consumption function is the result of a change in
A) consumer wealth. B) income. C) autonomous consumption. D) expected wealth.
All people in the working-age population can be divided into
A) labor force participants. B) employed, unemployed, or not in the labor force. C) either over-employed or under-employed. D) potential employees.
Voluntary exchange is based on the principle that all parties must gain from trade.
Answer the following statement true (T) or false (F)
Refer to Table 4-5. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one ticket falls from $50 to $20
A) only three tickets will be sold. B) everyone will buy a ticket. C) consumer surplus decreases from $48 to $24. D) consumer surplus increases from $0 to $62.