You go to the grocery store to buy a gallon of milk,expecting to pay $4.50 for it. Once you get there,you discover it is on sale

Question

3 years ago

11

You go to the grocery store to buy a gallon of milk,expecting to pay $4.50 for it. Once you get there,you discover it is on sale

for $2.50. The extra $2 that you saved on the $4.50 you were willing to pay for it represents A. Consumer surplus B.productive Efficiency C. Allocative efficiency D. Producer surplus

Business

1 answer:

Digiron [165] · Answer 1 · 2022-06-19T00:04:58+03:00

Digiron [165]3 years ago

5 0

A.

Consumer surplus is the benefit consumers enjoy from consuming a product, and is measured by the difference between what they would normally pay (expecting to pay) and what they actually pay. Thusly, the 2 dollar difference is your consumer surplus.