Multiple Choice
The personal likes and dislikes that make buyers more or less inclined to purchase a good are known as:
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5. Consumer and Producer Surplus; Price Ceilings and Floors
Consumer Surplus and Willingness to Pay
Multiple Choice
The price of a single item within a group of items is known as the ______________ of the item.
A
individual willingness to pay
B
consumer surplus
C
marginal price
D
total expenditure
Verified step by step guidance1
Understand the concept being asked: The problem is asking for the term that describes the price of a single item within a group of items.
Recall definitions of the options: 'Individual willingness to pay' refers to the maximum amount a consumer is willing to pay for an item, not the actual price.
'Consumer surplus' is the difference between what a consumer is willing to pay and what they actually pay, so it is not the price itself.
'Total expenditure' is the total amount spent on all items, which is the price per item multiplied by the quantity purchased, so it is not the price of a single item.
The term 'marginal price' refers to the price of one additional unit/item, which matches the description of the price of a single item within a group.
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