Multiple Choice
Approximately what percentage of their income do the world's poorest people spend on food?
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5. Consumer and Producer Surplus; Price Ceilings and Floors
Consumer Surplus and Willingness to Pay
Multiple Choice
Which term refers to the relative proportion in which a company's products are sold?
A
Sales mix
B
Willingness to pay
C
Market equilibrium
D
Consumer surplus
Verified step by step guidance1
Understand that the question is asking for a term that describes the relative proportion of different products sold by a company.
Recall that 'Sales mix' refers to the combination or proportion of different products that a company sells, showing how much each product contributes to total sales.
Recognize that 'Willingness to pay' relates to the maximum price a consumer is ready to pay for a good, which is unrelated to product proportions.
Know that 'Market equilibrium' is the state where supply equals demand in a market, not about product sales proportions within a company.
Understand that 'Consumer surplus' measures the difference between what consumers are willing to pay and what they actually pay, which does not describe product sales proportions.
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