Question

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

Short answer

When a shopper gets a "good deal" on a product, an economist would describe this situation as the shopper experiencing "Consumer Surplus." This is the difference between the amount a consumer is willing to pay for a product and the amount they actually pay for it, representing the monetary gain the consumer receives.

Step-by-step solution

Define a Good Deal

A "good deal" typically refers to a situation in which a shopper purchases a product at a price lower than the perceived value or the regular market price.

Identify the economic concept related to a Good Deal

The economic concept related to a "good deal" is "Consumer Surplus."

Explain Consumer Surplus

Consumer Surplus is the difference between the amount a consumer is willing to pay for a product and the amount they actually pay for it. In other words, it is the monetary gain a consumer receives when they purchase a product at a price lower than the maximum price they would be willing to pay. This concept captures the idea of a "good deal" from an economic perspective. So, when a shopper gets a "good deal" on a product, an economist would describe this situation as the shopper experiencing "Consumer Surplus."