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What is consumer surplus?
What is consumer surplus?
- The cost consumers incur in purchasing goods or services
- The amount of profit made by consumers from selling goods or services
- The difference between what consumers are willing to pay and what they actually pay for a good or service (correct)
- The total amount of money consumers have available to spend on goods and services
How is consumer surplus calculated?
How is consumer surplus calculated?
- By adding the quantity supplied to the price
- By finding the area of the triangle under the demand curve and above the price (correct)
- By subtracting the quantity demanded from the price
- By multiplying the quantity demanded by the price
What does consumer surplus indicate about consumer welfare?
What does consumer surplus indicate about consumer welfare?
- It indicates higher consumer welfare when consumer surplus is larger (correct)
- It indicates lower consumer welfare when consumer surplus is larger
- It has no relation to consumer welfare
- It indicates that consumers are overpaying for goods and services
In an oligopoly market, how many players typically exist?
In an oligopoly market, how many players typically exist?
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What is a key feature of an oligopoly market structure?
What is a key feature of an oligopoly market structure?
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What is a common strategy used by firms in an oligopoly market to maintain market power?
What is a common strategy used by firms in an oligopoly market to maintain market power?
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