After trying on a dress, a consumer assesses it to be worth a maximum of $100 and is willing to pay that amount for the dress. However, the dress was priced at $80. What is the amount, $100, referred to as? A. the producer surplusB. the firm's cost (C) in manufacturing the dressC. the consumer surplusD. the value (V) the consumer attaches to the dressThe amount, $100, is referred to as the value (V) the consumer attaches to the dress. Value denotes the dollar amount (V) a consumer would attach to a good or service. Value captures a consumer's willingness to pay and is determined by the perceived benefits a good or service provides to the buyer.

The answer is D. The value (V) the consumer attaches to the dress.

Explanation: The $100 dollars that the customer attaches to the dress is the reflection of how well the customer believes the dress will satisfy her. Meaning that it is worth this amount to her.

This means that among other dresses, the customer has evaluated the merits of this particular dress, and has concluded that this dress would best meet her needs, and therefore is worth that amount.

This is a marketing strategy used in marketing called Perceived Value. Marketers will try to influence the Perceived Value of a product, so that customers' desire for the product increase when they evaluate the quality of the product.

Value captures a consumer's willingness to pay and is determined by the perceived benefits a good or service provides to the buyer.

Explanation:

If after trying on a dress, a consumer assesses it to be worth a maximum of $100 and is willing to pay that amount for the dress and the dress was priced at $80; then the amount, $100, referred to as maximum price a consumer is willing to pay which is determined by the perceived benefits which the consumer will derive from the dress.

The whole $100 cannot be referred to as consumer surplus because:

Consumer surplus is the difference between the maximum price a consumer is willing to pay ($100) and the actual price of the product ($80).

If a consumer would be willing to pay more than the current asking price for a product or service, then they demonstrate that they are getting more benefit from the purchased product than they spent to buy it.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answer; lags, push the econ below the natural level of output;