Question

What term would an economist use to describe what happens when a shopper gets a "good deal" on a product?

Short answer

The term an economist would use to describe when a shopper gets a "good deal" on a product is "consumer surplus." Consumer surplus is the difference between the maximum amount a consumer is willing to pay for a product and the actual price they pay for it, representing the savings and satisfaction the consumer receives when paying less than expected.

Step-by-step solution

Identify the term that best describes a "good deal" in economics terms.

In economics, the term that best describes a shopper getting a "good deal" on a product is "consumer surplus."

Define consumer surplus

Consumer surplus is the difference between the maximum amount a consumer is willing to pay for a product and the actual price they pay for it. The concept is used to measure the welfare or satisfaction the consumer receives from buying a particular product.

Explain the relationship between consumer surplus and "good deals"

When a shopper gets a "good deal," it means they are paying less than what they were willing to pay for the product. This difference in price leads to an increase in consumer surplus, as they have saved money on the purchase while still enjoying the benefits of the product. Economists consider this additional satisfaction as an indicator of financial welfare or well-being, as customers get more value for their money when they find these good deals.