Statement I: The more piano lessons you take,the greater the consumer surplus you enjoy.
Statement II: Utility is measured by how useful a good or service is.
A)Statement I is true and statement II is false.
B)Statement II is true and statement I is false.
C)Both statements are true.
D)Both statements are false.

Question

Quizplus · Accepted Answer

Statement I is based on the concept of consumer surplus, which refers to the difference between the maximum price a consumer is willing to pay for a good or service and the actual price paid. Taking more piano lessons can lead to a greater appreciation and enjoyment of music, thus increasing the value of the lessons to the consumer and potentially leading to a higher price they would be willing to pay. Statement II, on the other hand, defines utility as the usefulness of a good or service. While utility is related to consumer surplus, it is not a direct measure of it.

Statement I: the More Piano Lessons You Take,the Greater the Consumer