Why are the poor given little weight in the measure of consumer surplus?
A) The poor don't tend to vote.
B) Many of the poor receive welfare payments.
C) The poor don't produce many goods.
D) The poor have little income.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay and what they actually pay. Since the poor have little income, their willingness to pay is lower, resulting in a smaller consumer surplus attributed to them.

Why Are the Poor Given Little Weight in the Measure