Please help me answer the following, I already provided the references.
2) Activity 1: Direction:Try to answer to the best of your ability the following questions I posted below. There's no right or wrong answers on this activity so be relax while answering these portion, okay? What I Know Questions: What I Learned 1. What is economic surplus? 2. What is consumer surplus? B.MAIN LESSON ECONOMIC SURPLUS Economic surplus refers to two related quantities: consumer surplus and producer surplus. It is calculated by combining the surplus benefit that is experienced by both consumers and producers in an economic transaction. Consumer Surplus In mainstream economics, consumer surplus is the difference between the highest price a consumer is willing to pay and the actual price they do pay for the good (which is the market price of the good). In other words, consumer surplus is the difference between what a consumer is willing to pay and what they actually pay for a good or service. A consumer is an individual who purchases products and services. Consumer surplus is C= 100 one way to determine the total benefit that Consumer Supply consumers receive from their goods and Surplus B-75 services. If a consumer is willing to pay more Producer for an item than the current asking price-the Demand market price-then they are theoretically A-20 receiving an additional benefit by purchasing the item at that price. If the price was their 100 a maximum willingness to pay, theoretically they would get less benefit from the purchased product. PAGE 12) Activity 3: Skill-Building Activities Part 1. Share your Experiences Upon learning the concept of consumer surplus, do you remember some of your personal experiences where the consumer surplus topic is related? Kindly give at least five scenarios based on your own experience. Scenario #1: Sconario #2: Scenario #3: Part 2. Problem Solving Price Direction: Answer the following questions: FIGURE I. 1. See Figure 1. If the price is $10, then what $30 is consumer surplus? $10 2. What is consumer surplus at a price of $8? 58 100 120 Quantity PAGE 3Points CBE represent the consumer surplus. The consumer is willing \"3 P3? 1'00 pesos for the good but the market price is only T5. _ . . To compute for consumer surplus. use the formula of the area of right triangle \"mm\" is Area = let: hh. where: 1s is constant. b stands for base and h for height. Note: Base is on the x axis or the quantity demanded and height is '3'" the y axis or the price. Let's use the above figure to compute for the consumer surplus. so = as en so = as (1 demos-rs} cs = ta (1 cones} v" consumer surplus is located below the demand cunre but adore the market equilibrium price. Equilibrium price [point E} corresponds to the intersection of demand and supply curue. For example. before making a purchase. most consumers decide how much they are willing to spend on an item. Suppose there is a college student that decides that a pair of sneakers is worth no more than 5.0% pesos. If the price of the sneakers is sooo pesos. then the student may decide not to buy them. However. if the price of the sneakers is soon pesos. the student will likely make the purchase. They may atso feel like they got a special deal. And in eoonornic terms. they've experienced a surplus of LUBE! poses: the difference between the maximum amount the student was willing to spend {sacs pesos] and the market price of the speakers {soon pesos}. For consumers. a surplus represents a monetary pain because they are aisle to purchase an item for Jfess than the highest price they would be willing to pay. PAGE 2
