Consumer surplus
A)is low for inexpensive goods.
B)is high for inexpensive goods.
C)is low for expensive goods.
D)is high for expensive goods.
E)may be low or high for any type of good,expensive or inexpensive,depending on the characteristics of demand.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum amount a consumer is willing to pay for a good and the actual price paid. This can vary for any type of good, expensive or inexpensive, depending on the characteristics of demand. For example, if a consumer is willing to pay $10 for a cup of coffee but only has to pay $3 at a café, their consumer surplus is $7. Whether the good is expensive or inexpensive doesn't determine the consumer surplus, rather it is the perceived value and willingness to pay of the consumer.

Consumer Surplus