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Author Question: What is consumer surplus? Why would policy makers be interested in consumer surplus? What will be ... (Read 69 times)

evelyn o bentley

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on: Jun 29, 2018
What is consumer surplus? Why would policy makers be interested in consumer surplus?
 
  What will be an ideal response?

Question 2

Any output combination inside a production possibilities frontier is associated with unused or underutilized resources.
 
  Indicate whether the statement is true or false


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zenzy

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Reply #1 on: Jun 29, 2018
Answer to Question 1

Consumer surplus is the difference between what a consumer is willing to pay for a product and what she actually pays for the product. Since consumer surplus measures the benefit that consumers receive from a good as they themselves perceive it, it serves as a good measure of economic well-being. Thus, if policy makers care about consumer preferences, they could use this measure to make normative judgments about market outcomes.

Answer to Question 2

TRUE


evelyn o bentley

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

Jsherida

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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