If price equals 0, then consumer surplus
A)is 0
B)is maximized
C)is price times quantity
D)is equal to marginal utility
E)cannot be determined

Name: If price equals 0, then consumer surplus A)is 0 B)is maximized C)is price times quantity D)is equal to marginal utility E)cannot be determined
Brand: Quizplus
Rating: 5.0 (38 reviews)

Question

Quizplus · Accepted Answer

Consumer surplus is maximized when the price is zero because consumers receive the maximum benefit from consuming goods without paying anything.

If Price Equals 0, Then Consumer Surplus