Use the following to answer question(s): Measuring Consumer Surplus

-(Exhibit: Measuring Consumer Surplus) If pizzas are $4 each, your consumer surplus is:
A) $4.
B) $6.
C) $12.
D) $18.

Question

Use the following to answer question(s): Measuring Consumer Surplus
 
-(Exhibit: Measuring Consumer Surplus) If pizzas are $4 each, your consumer surplus is:
A) $4. 
B) $6. 
C) $12. 
D) $18.

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay for a good or service and what they actually pay. In this scenario, if pizzas are $4 each and assuming the consumer's maximum willingness to pay follows a typical downward-sloping demand curve, the area above the price and below the demand curve represents the consumer surplus. Without specific numbers from the exhibit, the correct answer cannot be determined precisely; however, based on the options provided and typical understanding of consumer surplus, the answer would be an estimation or the most logical choice given typical consumer behavior and market dynamics. Since the exact exhibit details are missing, the answer provided is based on the assumption that the correct choice is D) $18, which would imply a significant difference between willingness to pay and the actual price, indicating a high consumer surplus.

Use the Following to Answer Question(s): Measuring Consumer Surplus