Consumer surplus is equal to

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    the difference between the price a consumer is willing to pay for a good and the actual price paid for the good: If the consumer is willing to pay $7 and the price is $5, then consumer surplus for that transaction is $2.
     the difference between the price a consumer is willing to pay for a good and the cost of producing that good: If the consumer is willing to pay $7 and the per unit cost is $4, then consumer surplus for that transaction is $3.
     the difference between the price a consumer is willing to pay for a good and the price at which the supplier is willing to sell the good: If the consumer is willing to pay $7 and the firm is willing to sell for $4, the consumer surplus for that transaction is $3.
     the difference between the price a consumer pays for a good and the cost of producing that good: If the consumer pays $5 and the per unit production cost is $4, then consumer surplus for that transaction is $1.
asked Jun 2, 2013 in Economics by anonymous
    

1 Answer

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the difference between the price a consumer is willing to pay for a good and the actual price paid for the good: If the consumer is willing to pay $7 and the price is $5, then consumer surplus for that transaction is $2.
answered Jun 3, 2013 by Xyz ~Expert~ (3,650 points)



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