High School

Bill and Ted each consume 15 chocolate bars at the current price. If Bill's demand for chocolate bars is more elastic than Ted's demand, then select one:

A. Bill's willingness to pay for the last chocolate bar is greater than Ted's.

B. Ted's willingness to pay for the last chocolate bar is greater than Bill's.

C. Bill's consumer surplus is greater than Ted's.

D. Ted's consumer surplus is greater than Bill's.

Answer :

Final answer:

Buyer surplus is the additional benefit consumers receive when they pay less for a product than they are willing to pay.Therefore, correct option is d).

Explanation:

Buyer Surplus: Buyer surplus is the additional benefit that consumers receive when they pay less for a product than they are willing to pay. It represents the difference between what consumers are willing to pay and what they actually pay for a good or service. In the context of the question, it relates to the willingness to pay for the last chocolate bar for Bill and Ted.

Other Questions