Economists measure the degree to which consumers lose when Walmart comes to a city by looking that their willingness to pay more at others stores. This measure is called

Question

Quizplus · Accepted Answer

The measure referred to in the question is called revealed preferences. This involves looking at the choices consumers make in the real world (i.e. the prices they are willing to pay) rather than relying on stated preferences obtained through surveys or hypothetical scenarios. Revealed preferences are considered to be a more accurate reflection of consumer behavior and preferences because they are based on actual choices rather than hypothetical ones.

Economists Measure the Degree to Which Consumers Lose When Walmart