Recall the Application about Japanese and American consumers' willingness to pay for Internet service to answer the following question(s). In the United States, the average willingness to pay for Internet service is $85 per month, and the average monthly price of Internet service is $40 per month.
-According to the Application,as a percentage of the price,consumer surplus from Internet service is

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the willingness to pay for a product or service and the actual price paid. In the United States, the average willingness to pay for Internet service is $85 per month, while the average monthly price of Internet service is $40 per month, resulting in a consumer surplus of $45 per month. On the other hand, the Application did not provide information on the willingness to pay for Internet service in Japan, but it stated that the average consumer surplus from Internet service in Japan is lower than that in the United States. Therefore, we can conclude that consumer surplus from Internet service is lower in the United States than in Japan.

Recall the Application About Japanese and American Consumers' Willingness to Pay