Suppose the market demand curve for hourly dial-up internet service is completely elastic.At the market equilibrium price under perfect competition,the consumer surplus in this market equals:

Question

Quizplus · Accepted Answer

With a completely elastic demand curve, any increase in price would cause consumers to switch to a different provider, resulting in a quantity demanded of zero at the market equilibrium price. Therefore, consumer surplus is equal to zero.

Suppose the Market Demand Curve for Hourly Dial-Up Internet Service