If a seller charges a buyer the exact price the buyer is willing to pay, then the buyer would
A) receive the maximum consumer surplus.
B) receive no consumer surplus from that unit of the good.
C) receive no benefit from the good.
D) suffer a deadweight loss from buying the good.
E) not buy the good.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a buyer is willing to pay for a good and the actual price they pay. If the seller charges the exact price the buyer is willing to pay, then there is no difference between the maximum price the buyer is willing to pay and the actual price they pay, resulting in no consumer surplus.

If a Seller Charges a Buyer the Exact Price the Buyer