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 the area under the entire demand curve.
B) Demand decreases as the price decreases.
C) The lower the price the smaller the consumer surplus.
D) The consumer surplus will be zero at a price of $10.
E) The consumer surplus is zero at a price of $1.

Question

Quizplus · Accepted Answer

At a price of $10, the quantity demanded is zero, meaning no consumer surplus exists because no units are purchased.

Assume a Person Reveals the Following Demand Conditions