Everyone has an item put a higher value on than the price
warrants. They pay premium than to do without. The consumer surplus is high.
What items do you cherish the most? Why are you willing to pay more? Explain.
Consumer surplus is what you would pay if you had to and what you actually pay.
For example if I had to, I would be willing to pay a high price for a news papers (maybe $20 dollars or even more). However most of the time I pay very little ($0-$2,) I could not possibly go without a newspaper; since. reading is something I need everyday. Not reading would make feel almost like being dead. You are no longer participating in the world. I would be willing to pay a high price for it; but I usually read newspapers online for almost zero dollars. Therefore, there is a high consumer surplus.
Feb 3rd, 2015
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