Welcome to Westonci.ca, where you can find answers to all your questions from a community of experienced professionals. Join our Q&A platform to connect with experts dedicated to providing precise answers to your questions in different areas. Join our Q&A platform to connect with experts dedicated to providing accurate answers to your questions in various fields.
Sagot :
Answer:
both existing customers who now get lower prices on the gowns they were already planning to purchase and new customers who enter the market because of the lower prices.
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
Let assume that the price before the sale and after the sale is $1000 and $800. The willingness to pay of customer A is $1500 and for customer b is $900
consumer surplus of customer A before sale = 1500 - 1000 = 500
consumer surplus of customer A after sale = 1500 - 800 = 700
consumer surplus of customer B before sale = Â 0
consumer surplus of customer B after sale = 900 - 800 = 100
consumer surplus of both customers increase
Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Discover more at Westonci.ca. Return for the latest expert answers and updates on various topics.