What do we call the difference between the demand curve and price in the neoclassical pricing model (see the graph below - Again, next to the solutions)?
a) Willingness to pay
b) Consumer surplus
c) Producer surplus
Answer: b) Consumer surplus
What do we call the difference between the demand curve and price in the neoclassical pricing model (see the graph below - Again, next to the solutions)?
a) Willingness to pay
b) Consumer surplus
c) Producer surplus
Answer: b) Consumer surplus