Multiple Choice
Which of the following most exemplifies the value-added principle in the context of consumer surplus and willingness to pay?
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5. Consumer and Producer Surplus; Price Ceilings and Floors
Consumer Surplus and Willingness to Pay
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
In microeconomics, the end-user of the supply chain (the consumer) drives which type of demand?
A
Joint demand
B
Direct demand
C
Derived demand
D
Composite demand
Verified step by step guidance1
Understand the concept of demand in microeconomics, which refers to the quantity of a good or service that consumers are willing and able to purchase at various prices.
Identify the different types of demand: Direct demand, Derived demand, Joint demand, and Composite demand.
Recognize that direct demand is the demand for a final good or service by the end-user or consumer, who uses the product for personal consumption.
Know that derived demand refers to demand for a good or service that arises from the demand for another good (e.g., demand for steel derived from demand for cars).
Conclude that since the end-user or consumer drives the demand for the final product they consume, this type of demand is called direct demand.
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