question 38\na consumer is willing to pay $5.00 per gallon of gas but finds that the price at the gas…

question 38\na consumer is willing to pay $5.00 per gallon of gas but finds that the price at the gas station is $4.00 per gallon. this $1.00 difference is\n\na) consumer surplus\n\nb) deadweight loss\n\nc) total utility\n\nd) economies of scale\n\ne) profit

question 38\na consumer is willing to pay $5.00 per gallon of gas but finds that the price at the gas station is $4.00 per gallon. this $1.00 difference is\n\na) consumer surplus\n\nb) deadweight loss\n\nc) total utility\n\nd) economies of scale\n\ne) profit

Answer

Brief Explanations:

Consumer surplus is the difference between the maximum price a consumer is willing to pay and the actual price paid. Here, the consumer is willing to pay $5.00 per gallon but pays $4.00 per gallon, so the $1.00 difference is consumer surplus. Deadweight loss is related to inefficiencies in the market, total utility is the total satisfaction from consumption, economies of scale are about cost - output relationships, and profit is related to revenue minus costs for producers.

Answer:

A. consumer surplus