ECONOMICS
DEMAND
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
If you are willing to pay $2, 000 for a laptop with some specific performance level, but end up finding that exact laptop for $1, 500 then how much is the consumer surplus you are enjoying.
|
|
$0
|
|
|
$500
|
|
|
$1, 500
|
|
|
$2, 000
|
Explanation:
Detailed explanation-1: -DISCRETE GOODS AND RESERVATION PRICES The highest price the consumer is willing to pay for the product is called the consumer’s reservation price, valuation, or maximum willingness to pay.
Detailed explanation-2: -Willingness to pay is the sum of the price paid and consumer surplus. Therefore, Melissa’s willingness to pay is $400 = $240 + $160.
Detailed explanation-3: -Quanity Supply: 1. Economists define supply as the quantity of a good or service that producers are willing and able to offer for sale at each possible price during a given time period.
Detailed explanation-4: -Her willingness to pay is $200.
There is 1 question to complete.