is the difference between the maximum price the
consumer is willing to pay for that unit and the.
b. A consumer will continue to purchase a good as long as
the marginal value received from the last unit purchased
is than the market price.
c. When the market is in equilibrium, consumer surplus on
the final unit purchased is.
d. If you are willing to pay $20 to download a new movie,
but the market price is $6, your consumer surplus for the
purchase of that unit is.
e. Since water (in Canada) has a very low price, consumers
continue to use it to the point where the marginal value
they place on the last unit they consume is also. At the
same time, the total value placed on the water consumed
is.
f. The paradox of value refers to the situation where a good
with low total value can command a price, while a
good with a high total value may only command a
price.
