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3 years ago

2 Distinguish between value and price and define consumer surplus.

Business

1 answer:

Tomtit [17]3 years ago

4 0

Answer:

Value is the benefit that a consumer could receive if they consume a certain type of goods or service. This value tend to be different between customers' situation.

Price is the amount of resources that the consumer need to sacrifice in order to obtain a certain type of goods or services.

The value of the products and services will determine the amount of money that the consumes willing to pay to acquire them. Most consumers are not willing to make a purchase if the price exceeds the perceived value.

A consumer surplus will occur if the amount of price that the consumers spend to purchase that goods is lower compared to the amount of price that they're willing to pay based on the value.

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3 years ago

Changes in aggregate demand

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Answer:

The correct answer is option B.

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3 years ago

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4 years ago

Read 2 more answers

In order to sell more goods and/or services, what must a monopoly do?

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3 years ago

"Stock R has a beta of 1.5, Stock S has a beta of 0.75, the required return on an average stock is 10%, and the risk-free rate o

Kaylis [27]

Answer:

4.5%

Explanation:

Stock R (Beta) = 1.5

Stock S (Beta) = 0.75

Expected rate of return on an average stock (Rm)= 10%

Risk free rate (Rf) = 4%

Required Return (Re) = Rf +(Rm-Rf) B

Required Return = 0.04 + (0.10-0.04) B

Required Return = 0.04 + 0.06B

Stock R = 0.04 + (0.06 * 1.50)

Stock R = 0.04 + 0.09

Stock R = 0.13

Stock R = 13%

Stock S = 0.04 + (0.06 * 0.75)

Stock S = 0.04 + 0.045

Stock S = 0.085

Stock S = 8.5%

Here, the more risky stock is R and less risky stock is S. Since, R has more beta than the Stock S.

= 13% - 8.5%

= 4.5%

7 0

3 years ago

2 Distinguish between value and price and define consumer surplus.​

2 Distinguish between value and price and define consumer surplus.