What is meant by consumer surplus? How is it calculated?
What will be an ideal response?
Consumer surplus is the difference between the willingness to pay and the price paid for a good. It is measured as the area between the consumer's willingness to pay and the market price up to the equilibrium quantity.
Economics
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Suppose the growth in GDP per hour resulting from physical capital in an economy is 1% and the growth resulting from human capital is 2%. If the annual growth rate of GDP per hour is 5%, the growth resulting from technology equals:
A) 4%. B) 3%. C) 2%. D) 1%.
Economics
If diminishing marginal returns is in effect
A) marginal costs fall. B) marginal costs rise. C) average costs fall. D) average revenue is constant.
Economics