The consumer surplus derived from products that have an inelastic demand is greater than that from products with an elastic demand.

Question

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Consumer surplus is the difference between the price consumers are willing to pay for a good and the price they actually pay. When demand is inelastic, consumers are less responsive to changes in price, so they are willing to pay more for the good. This means that the consumer surplus is greater for products with inelastic demand.

The Consumer Surplus Derived from Products That Have an Inelastic