Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
1→2→4→3
B
2→1→3→4
C
1→4→2→3
D
4→2→3→1
Understanding the Answer
Let's break down why this is correct
Answer
To determine consumer surplus using marginal analysis, start by assessing the price a consumer is willing to pay for a good or service. This is important because it reflects the maximum value they place on that item. Next, compare this marginal benefit with the market price to see if the consumer gains value from purchasing the item. After that, determine the optimal quantity to purchase, which is the amount where the consumer feels they get the most benefit. Finally, calculate the consumer surplus, which is the difference between the price they were willing to pay and the market price for the quantity they decided to buy.
Detailed Explanation
First, you find out how much a consumer is willing to pay. Other options are incorrect because This option suggests comparing benefits before knowing how much to pay; This option puts the quantity decision before comparing benefits.
Key Concepts
Consumer Surplus
Marginal Analysis
Optimal Purchasing Decisions
Topic
Consumer Surplus and Marginal Analysis
Difficulty
easy level question
Cognitive Level
understand
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