Consumer surplus does not exist because some consumers cannot afford to purchase the product at all.

Question

Quizplus · Accepted Answer

Consumer surplus does exist for those consumers who are willing and able to purchase a product, regardless of whether others cannot afford it. The concept of consumer surplus is based on the difference between what consumers are willing to pay for a product and what they actually pay. It is not dependent on the ability of all consumers to purchase the product.

Consumer Surplus Does Not Exist Because Some Consumers Cannot Afford