Assume a person reveals the following demand conditions.At a price of $10,quantity demanded is zero; and at a price of $1,quantity demanded is 10 units.
A)The consumer surplus will be zero at a price of $10.
B)Demand decreases as the price decreases.
C)The lower the price the smaller the consumer surplus.
D)The consumer surplus is zero at a price of $1.
E)The consumer surplus will be the area under the entire demand curve.

Question

Quizplus · Accepted Answer

The consumer surplus is zero at a price of $10 because the quantity demanded is zero, meaning no consumer is willing to buy at that price.

Assume a Person Reveals the Following Demand Conditions