Log out Go to App
Go to App

Learning Materials

Features

Discover

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

Economists use the term consumer surplus when a shopper gets a " good deal " on a product.

Step by step solution

01

Step 1. Meaning of Consumer Surplus.

Consumer surplus is the extra benefit consumers receive from buying a good or service, measured by what the individuals would have been willing to pay minus the amount that they actually paid.

02

Step 2. Explaining the reason.

Economists use the term consumer surplus when a shopper gets a " good deal " on a product. Since it happens when the price actually paid by the consumer is less than the price they are willing to pay.

For example, when the price of a good is $30and the customer after discount pays

$20. Then, there is a consumer surplus which is a great deal for the consumer.

Unlock Step-by-Step Solutions & Ace Your Exams!

  • Full Textbook Solutions

    Get detailed explanations and key concepts

  • Unlimited Al creation

    Al flashcards, explanations, exams and more...

  • Ads-free access

    To over 500 millions flashcards

  • Money-back guarantee

    We refund you if you fail your exam.

Start your free trial

Over 30 million students worldwide already upgrade their learning with Vaia!

One App. One Place for Learning.

All the tools & learning materials you need for study success - in one app.

Get started for free

Most popular questions from this chapter

Name some factors that can cause a shift in the demand curve in markets for goods and services.

The computer market in recent years has seen many more computers sell at much lower prices. What shift in demand or supply is most likely to explain this outcome? Sketch a demand and supply diagram and explain your reasoning for each.

(a) A rise in demand

(b) A fall in demand

(c) A rise in supply

(d) A fall in supply

When analyzing a market, how do economists deal

with the problem that many factors that affect the market

are changing at the same time?

What is the effect of a price ceiling on the quantity demanded of the product? What is the effect of a price ceiling on the quantity supplied? Why exactly does a price ceiling cause a shortage?

What is the relationship between total surplus and economic efficiency?
See all solutions

What do you think about this solution?

We value your feedback to improve our textbook solutions.

Study anywhere. Anytime. Across all devices.

Sign-up for free