Which of the following best explains the source of consumer surplus for a particular product?
a. Many consumers pay prices that are greater than the equilibrium price of the product.
b. Many consumers would be willing to pay more than the market price for the product.
c. Many consumers think the market price of the product is greater than its cost.
d. Many consumers think the demand for the product is elastic.
B
You might also like to view...
Assume a market that has an equilibrium price of $4. If the market price is set at $8, which of the following is true?
A. Some surplus is transferred from consumers to producers, but total surplus falls. B. All surplus is transferred from consumers to producers, and total surplus stays the same. C. Some surplus is transferred from producers to consumers, but total surplus falls. D. Some surplus is transferred from consumers to producers, causing total surplus to increase.
A cause of the decline in the velocity of money during the 2007-2009 financial crisis was a result of:
A. the fiscal stimulus provided by the U.S. government. B. the lowering of the discount rate by the Fed. C. an increase in uncertainty. D. the use of unconventional policy tools by the Fed.