The relationship between interest rates with differing times to maturity is known as the ________ ________ of interest rates.
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Answer:
the first part of the question is missing, so I looked for a similar one (see attached image):
the cost of hiring a moving crew for 8 hours = $250 per hour x 8 hours = $2,000
the competing company offered you a deal worth $1,200
since you expect to use the moving crew during the whole 8 hours, you will gain = $2,000 - $1,200 = $800 in consumer surplus
Consumer surplus is the difference between what a consumer (in this case you) are willing to pay for a good or service and the actual price of the good or service. Consumer should be willing to consumer a good or service as long as the consumer surplus is ≥ 0.
