What is the consumer surplus from Internet service? Two recent studies compute consumers willingness to pay for
Question:
What is the consumer surplus from Internet service? Two recent studies compute consumers’ willingness to pay for Internet service. For Japanese consumers, the average willingness to pay for Internet service (e-mail and Web browsing delivered over personal computers) is ¥5,623 per month, compared to an average price of broadband Internet service of ¥4,000. In other words, the average consumer surplus is ¥1,623, or about 40 percent of the price. For U.S. consumers, the average willingness to pay for Internet service is $85 per month, and with an average monthly price of $40, the consumer surplus is $45 per month.
Question.
How do we compute consumer surplus?
Step by Step Answer:
Microeconomics Principles Applications And Tools
ISBN: 9780134078878
9th Edition
Authors: Arthur O'Sullivan, Steven Sheffrin, Stephen Perez