Which of the following best explains the source of consumer surplus for Good A?
a. Many consumers pay prices that are greater than the equilibrium price of Good A
b. Many consumers would be willing to pay more than the market price for some units of Good A.
c. Many consumers think the market price of Good A is greater than its cost.
d. Many consumers of Good A place a value on it that is less than the market price.
b
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If one of the specific goals that central bankers focus on is economic growth, should they aim for the highest short-term growth rate the economy can achieve? Explain.
What will be an ideal response?
In a competitive market for corn, the law of demand indicates that, other things equal, as:
a. The price of corn decreases, the quantity of corn demanded will decrease b. Income decreases, the quantity of corn demanded will increase c. The demand for corn decreases, the price will increase d. The price of corn rises, the quantity of corn demanded will fall