Consumer Surplus Flashcards
1
Q
What is consumer surplus??
A
The extra amount a customer is willing to pay for a product above the price that they actually pay (market price)
2
Q
What is price discrimination??
A
The action of selling the same product at different prices to different buyers in order to maximise profits and sales
3
Q
What is declining consumer surplus??
A
The more of something we consume, the less likely we ate to want more of it
