Which of the following can be used to estimate the dollar value of the change in consumer well-being from a price change?
A) A change in consumer surplus.
B) A change in producer surplus.
C) Excess supply.
D) Excess demand.
E) Market prices.

Question

Quizplus · Accepted Answer

A change in consumer surplus can be used to estimate the dollar value of the change in consumer well-being from a price change because it reflects the difference between the maximum price a consumer is willing to pay for a good or service and the actual price paid. As the price changes, so too does the consumer surplus, providing a measure of the change in well-being. The other choices (B, C, D, and E) do not directly measure consumer well-being or changes in it.

Which of the Following Can Be Used to Estimate the Dollar