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Chapter 3: Problem 49

What term would an economist use to describe what happens when a shopper gets a "good deal" on a product?

Short Answer

Expert verified
The term an economist uses to describe what happens when a shopper gets a "good deal" on a product is called "consumer surplus." This refers to the difference between the price a consumer is willing to pay for a product and the actual price they pay for it in the market. It represents the benefit or value a consumer gains by purchasing a product at a lower price than they are willing to pay.

Step by step solution

01

Identify the economic term for a good deal

The term an economist uses to describe what happens when a shopper gets a "good deal" on a product is called "consumer surplus."
02

Explain the concept of consumer surplus

Consumer surplus is the difference between the price a consumer is willing to pay for a product and the actual price they pay for the product in the market. In other words, it is the benefit or value a consumer gains by purchasing a product at a lower price than they are willing to pay. When a shopper gets a good deal on a product, it means they are paying less for the product than their personal valuation of its worth, resulting in a consumer surplus. A consumer surplus is generally considered a favorable outcome for the consumer, as they have saved money and received more value from the transaction than the price paid.

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