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MissTica
3 years ago
11

Consumer surplus is A. the difference between the highest price a consumer is willing to pay and marginal benefit. B. the differ

ence between the highest price a consumer is willing to pay and the lowest price a firm would be willing to accept. C. the difference between the highest price a consumer is willing to pay and the price the consumer actually pays. D. the difference between the lowest price a firm would be willing to accept and the price it actually receives. E. the highest price a consumer is willing to pay to consume a good or service. How does consumer surplus change as the equilibrium price of a good rises or​ falls?
Business
1 answer:
belka [17]3 years ago
8 0

Answer:

The correct answer is C. the difference between the highest price a consumer is willing to pay and the price the consumer actually pays.

Explanation:

Consumer surplus arises from the law of diminishing returns. This means that the first unit to acquire we value it highly but as we acquire additional units our valuation falls. However, the price we pay for any unit is always the same: the market price. In this way, we enjoy a positive surplus of the first units we acquire until we reach the last one in which the surplus will be zero.

In graphic terms, consumer surplus is measured as the area below the market demand curve and above the price line. The demand curve measures the amount consumers are willing to pay for each unit consumed. Then, the total area below the demand curve reflects the total utility of consumption of the good or service. If the price we pay for each unit is subtracted from this area, the consumer surplus is obtained.

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If there's any leftover after the company distribute the payment to preferred stock holders, than that leftover is distributed to the common stock holders

Hope this helped you out

8 0
3 years ago
Assume that we are back to talking about bags of oranges (a private good), but that the government has decided that tossed orang
ruslelena [56]

Answer:

If negative externalities pop up in a market, the equilibrium is higher than the efficient output.

Thus when it comes to the government rectification regarding the side effects of that commercial , activity, if the amount of bags is (1) then the new equilibrium would be: <em>p*= $17</em>

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3 years ago
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7 0
3 years ago
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Explanation:

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He did not know how to properly manage the time to carry out the proposed activities, which were attempts to execute projects and priority by the integration of the objective management program (MBO), but the plans were never put into action by Sam, because he did not. there was no procedure for conflict resolution at work and did not share your work

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Technology is changing the world with the introduction of tools such as the Internet and e-mail for communication, word processing, spreadsheets and presentations for office productivity, electronic databases for record keeping, robots and artificial intelligence. It has evolved and shaped our workplace. automation.

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