Consumer surplus is
A)the difference between the market price of the good and the cost of the good.
B)greater on the last unit sold than on the first unit sold.
C)greater on the first unit sold than on the last unit sold.
D)equal to price multiplied by quantity sold.
E)equal to the area below the demand curve.

Question

Quizplus · Accepted Answer

Consumer surplus is greater on the first unit sold than on the last unit sold because consumers are typically willing to pay more for the first units of a good than for additional units, reflecting diminishing marginal utility.

Consumer Surplus Is