Consumers' total benefit from consuming a good is equal to the
A) consumer surplus minus the total amount spent on the good.
B) total amount spent on the good divided by the number of units purchased.
C) total amount spent on the good.
D) consumer surplus plus the total amount spent on the good.
E) consumer surplus on the quantity purchased.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the total amount consumers are willing to pay and the total amount they actually pay. Therefore, consumers' total benefit from consuming a good is equal to the consumer surplus plus the total amount spent on the good. Choice A is incorrect because it subtracts the total amount spent on the good from the consumer surplus. Choice B is incorrect because it is an average calculation and does not represent the total benefit received by consumers. Choice C is incorrect because it only includes the amount spent and does not account for the consumer surplus. Choice E is incorrect because it only considers the consumer surplus on a specific quantity rather than the total benefit from consuming the good.

Consumers' Total Benefit from Consuming a Good Is Equal to the