Consider the pizza market,with a downward- sloping demand curve and an upward- sloping supply curve.Suppose 100 pizzas are purchased at the free- market equilibrium price.The consumer surplus on the 100th pizza is
A)positive.
B)zero.
C)negative.
D)unknown.
E)non- negative.

Question

Quizplus · Accepted Answer

At the free-market equilibrium price, the consumer surplus for each pizza consumed is equal to zero since consumers are willing to pay exactly the market price for the pizza. Therefore, the consumer surplus on the 100th pizza is also zero.

Consider the Pizza Market,with a Downward- Sloping Demand Curve and an Upward-