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Chapter 3: Q.49 (page 79)

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

Short Answer

Expert verified

When a consumer receives a "good deal" on goods, economists refer to it as "consumer surplus."

Step by step solution

01

Definition

Economic Terms:

Economists frequently use specific jargon to describe everyday events. A cost-benefit analysis will be performed by an economist, but a customer in a store may simply declare, "I can't afford it." Even the shopper would be referred to as a "consumer" rather than a "shopper."

02

Explanation

When a consumer receives a "good deal" on goods, economists refer to it as "consumer surplus." Because the price consumers actually pay is lower than the price they are willing to pay, consumer surplus occurs.

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Most popular questions from this chapter

Consider the demand for hamburgers. If the price of a substitute good (for example, hot dogs) increases and the price of a complement good (for example, hamburger buns) increases, can you tell for sure what will happen to the demand for hamburgers? Why or why not? Illustrate your answer with a graph.

Table 19. 5 illustrates the market's demand and supply for cheddar cheese. Graph the data and find the equilibrium. Next, create a table showing the change in quantity demanded or quantity supplied, and a graph of the new equilibrium, in each of the following situations:

a. The price of milk, a key input for cheese production, rises, so that the supply decreases by 80 pounds at every price.

b. A new study says that eating cheese is good for your health, so that demand increases by 20% at every price.

What would be the impact of imposing a price floor below the equilibrium price?

Will supply curves have the same shape in all

markets? If not, how will they differ?

Review Figure 3.4. Suppose the government decided that, since gasoline is a necessity, its price should be legally capped at $1.30 per gallon. What do you anticipate would be the outcome in the gasoline market?
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