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10.07.2022 - 10:18

The seller offering a $1.00 off coupon for ice cream raises the consumer surplus to the consumer who uses the coupon. True or false?

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The seller offering a $1.00 off coupon for ice cream raises the consumer surplus to the consumer who uses the coupon. True or false?

Answers (1)

Dorotha April 3, 2023 в 23:43

True. Consumer surplus is the difference between the amount that the consumer is willing to pay for a good or service and the actual price of that good or service. By offering a $1.00 off coupon for ice cream, the seller is essentially lowering the price of the ice cream for the consumer who uses the coupon. This means that the consumer is now paying less for the ice cream than they were originally willing to pay, which increases their consumer surplus. Therefore, the statement is true.

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