Asked by Brayan Checo Rosario on Jul 08, 2024
Verified
If the price a consumer pays for a product is equal to a consumer's willingness to pay, then the consumer surplus relevant to that purchase is
A) zero.
B) negative, and the consumer would not purchase the product.
C) positive, and the consumer would purchase the product.
D) There is not enough information given to answer this question.
Consumer Surplus
The variance between the sum consumers are willing to pay for a good or service and the amount they truly pay.
Willingness to Pay
The maximum amount an individual is prepared to spend on a good or service, reflecting the value they assign to it.
- Comprehend the principle of consumer surplus and the impact of market condition variations on it.
Verified Answer
EZ
Edison ZhengJul 09, 2024
Final Answer :
A
Explanation :
Consumer surplus is the difference between what a consumer is willing to pay and what the consumer actually pays. If these two amounts are equal, the consumer surplus is zero.
Learning Objectives
- Comprehend the principle of consumer surplus and the impact of market condition variations on it.