Join IDNLearn.com and start exploring the answers to your most pressing questions. Discover in-depth and trustworthy answers from our extensive network of knowledgeable professionals.
Sagot :
Since Roy is willing to pay $2.50 for a sports drink, but since the price has increased to $2.75, his consumer surplus would be $0.
Consumer surplus is an economic measure of the benefits that consumers receive as a result of market competition. When the price that consumers pay for a product or service is less than the price that they are willing to pay, this is referred to as a consumer surplus. It is a measure of the additional benefit that consumers receive as a result of paying less than they were willing to pay for something. Consumer surplus and producer surplus can be compared.
Consumer surplus rises when the price of a good falls and falls when the price of a good rises. Economists visualize it as the triangular area under the demand curve between the market price and what consumers are willing to pay.
Learn more about consumer surplus here:
https://brainly.com/question/27856742
#SPJ4
We are happy to have you as part of our community. Keep asking, answering, and sharing your insights. Together, we can create a valuable knowledge resource. Find clear answers at IDNLearn.com. Thanks for stopping by, and come back for more reliable solutions.
