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From course:

Economics A Level (DONEEEEEEE)

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Question:

What is the Consumer Surplus and how may this Happen?

Author: eric_galvao



Answer:

-This is when the Consumer buys a Good for Less [say $2] than what they were Expecting [$5] -The Consumer Surplus above would be $3 - That's the Difference between the Price that a Consumer is Willing to Pay, and the Price they Actually Pay [Equilibrium Price] -This may happen as Consumers have simply Different Thought Engines, Preferences, Incomes and Views.


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