Answered

If the average price that cable subscribers are willing to pay for cable television is $208, but the actual price they pay is $81, how much is consumer surplus per subscriber?

Answer :

Edufirst

Answer:

  • $127

Explanation:

The consumer  surplus per consumer is the difference between the average price the consumers are willing to pay for a product, given the utility of the product, and the they are paying.

Since they are paying $81 and they are willing to pay $208, the average surplus per consumer is:

  • $208 - $81 = $127.

The surplus ot the consumer is a monetary measure of how much a purchase benefits the consumer.

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