Business, 07.10.2019 17:30 Ganggang62

Consumer surplus:
a. represents the maximum amount a person is willing to pay for a particular good.
b. is the difference between the maximum amount a person is willing to pay for a good and its current market price.
c. is the difference between the current market price and the cost of production for the firm.
d. is the difference between the true value of a good and the amount a person is willing to pay for the good.

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The answer is: B) is the difference between the maximum amount a person is willing to pay for a good and its current market price.

Explanation:

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a product or service and the actual price of the product or service.

Consumer surplus can be better explained at a personal level. Imagine a person wants to buy a new smartphone. He or she is willing to pay up to $600 for a new unit. He looks around a store and finds the smartphone that best suits him (or her) and it only costs $500. The difference between the amount the customer was willing to pay for a smartphone and the actual price of the smartphone ($600 - $500 = $100) is that consumer's surplus on smartphones.

In a demand-supply curve, consumer surplus is given by the area below the demand curve and above the equilibrium price.

Consumer surplus: a. represents the maximum amount a person is willing to pay for a particular goo

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c is the answer, and do you have a ps4?

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$527.7.if the following was the question $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?

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Consumer surplus:
a. represents the maximum amount a person is willing to pay for a particul...

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