The buyer who loses the most consumer surplus when the price of the commodity rises from $20 to $22 is the one who experiences the same loss of consumer surplus as the other two customers.
A consumer surplus occurs when customers pay less for a good or service than they would be willing to. It is a way to quantify the extra value that consumers get from paying less than what they would have been willing to pay for a product.
The gap between what a customer is willing to pay and the price they actually pay for a product is referred to as the customer surplus. The price differential between the market price and the lowest price a producer is willing to take in order to create a good is known as the producer surplus.
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Who experiences the largest loss of consumer surplus when the price of the good increases from $20 to $22?
Carlos $15
Quilana $25
Wilbur $35
Ming-la $45