Author Question: Which of the following statements correctly differentiates between consumer surplus and net ... (Read 59 times)

Sportsfan2111 · **on:** Jun 29, 2018

Which of the following statements correctly differentiates between consumer surplus and net benefits?

A) Consumer surplus at different levels of consumption can be calculated arithmetically, whereas net benefits at different levels of consumption cannot be estimated.
B) Consumer surplus at different levels of consumption cannot be estimated, whereas net benefits at different levels of consumption can be calculated arithmetically.
C) Consumer surplus measures difference between willingness to pay for a good and its price, whereas net benefits measure the overall satisfaction gained from consumption of a good.
D) Consumer surplus equals the overall satisfaction gained from consumption of a good, whereas net benefits measure the difference between willingness to pay for a good and its price.

Question 2

Refer to the scenario above. Jack will derive ________ units of utility if Jill tries to move the tree while he does not try at all.

A) 5
B) -5
C) -2
D) 10