Answer to Question #66436 in Microeconomics for John
(a) What is the industry price and quantity if there are a large number of buyers
and sellers in the industry.
(b) What is meant by consumer surplus. What is the level of consumer surplus
in this industry.
b) Consumer surplus is calculated by analyzing the difference between what consumers are willing and able to pay for a good or service relative to its market price, or what they actually do spend on the good or service. A consumer surplus occurs when the consumer is willing to pay more for a given product than the current market price.
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