📚 Learning Guide
Consumer Surplus and Marginal Analysis
easy

A consumer is willing to pay $50 for a concert ticket but buys it for $30. How would you classify the consumer surplus in this scenario?

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Learning Path
Learning Path

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Choose the Best Answer

A

The benefit gained from the lower price paid

B

The total cost of the ticket

C

The difference between the highest price they would pay and the lowest price

D

The emotional satisfaction from attending the concert

Understanding the Answer

Let's break down why this is correct

Answer

Consumer surplus is the extra benefit that a consumer receives when they pay less for a product than what they are willing to pay. In this scenario, the consumer is willing to pay $50 for a concert ticket but only pays $30. This means the consumer surplus is $20, which is the difference between the amount they were willing to pay and the actual price they paid. For example, if you were excited about a concert and thought the ticket was worth $50 but found it for only $30, you would feel happy about saving that extra $20. This extra money can be seen as the value you gain from the purchase, showing how much you benefit from the deal.

Detailed Explanation

Consumer surplus is the extra benefit a buyer gets when they pay less than what they are willing to pay. Other options are incorrect because This answer confuses cost with benefit; This option mixes up the idea of price ranges with actual benefit.

Key Concepts

Consumer Surplus
Marginal Analysis
Pricing Strategy
Topic

Consumer Surplus and Marginal Analysis

Difficulty

easy level question

Cognitive Level

understand

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