If Cliff Althoff attends an antique auction, spots a vase that he would be willing to buy at $400, and he is the winning bidder at a price of $400, then Cliff

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Quizplus · Accepted Answer

CConsumer surplus is the difference between what a consumer is willing to pay and what they actually pay. Since Cliff was willing to pay $400 and paid $400, his consumer surplus is zero, indicating he received exactly the value he expected from the vase. However, saying he should not have purchased the vase because the consumer surplus is zero (C) is incorrect because having a zero consumer surplus does not imply a bad purchase; it simply means the purchase price equaled his valuation of the vase.

If Cliff Althoff Attends an Antique Auction, Spots a Vase