Ask Question
15 November, 13:26

Denise values a stainless steel dishwasher for her new house at $500. The actual price of the dishwasher is $650. Denise A. buys the dishwasher, and on her purchase she experiences a consumer surplus of $-150. B. buys the dishwasher, and on her purchase she experiences a consumer surplus of $150. C. does not buy the dishwasher, and on her purchase she experiences a consumer surplus of $0. D. does not buy the dishwasher, and on her purchase she experiences a consumer surplus of $150.

+4
Answers (1)
  1. 15 November, 13:34
    0
    C. does not buy the dishwasher, and on her purchase she experiences a consumer surplus of $0.

    Explanation:

    A consumer surplus is the difference between what a consumer pays for an item and what they are willing to pay. In this case Denise is willing to pay $500 and pays $650. The amount she pays is more than she is willing to pay hence her consumer surplus can't be negative. This means it will be 0.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Denise values a stainless steel dishwasher for her new house at $500. The actual price of the dishwasher is $650. Denise A. buys the ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers