Consumer surplus captures some of the value of a product, which reduces the price a firm can charge for it.

Name: Consumer surplus captures some of the value of a product, which reduces the price a firm can charge for it.
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Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the price consumers are willing to pay for a product and the price they actually pay. This means that consumer surplus captures some of the value of a product, which reduces the price a firm can charge for it.

Consumer Surplus Captures Some of the Value of a Product