What is the consumer surplus for the market from the consumption of the 100th unit of a good?
A)the marginal social cost of the 100th unit
B)the marginal social benefit from the 100th unit
C)the opportunity cost of producing the 100th unit
D)the marginal social benefit from the 100th unit minus the marginal social cost of the 100th unit
E)the marginal social benefit from the 100th unit minus the price paid for the 100th unit

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the price a consumer is willing to pay for a good or service and the price they actually pay. For the 100th unit, the marginal consumer is the one who is just willing to pay the price for that unit. Therefore, the consumer surplus for the 100th unit is the difference between the marginal benefit (marginal social benefit) and the price paid for that unit. Hence, the correct answer is E.

What Is the Consumer Surplus for the Market from the Consumption