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) negative.
B) zero.
C) unknown.
D) positive.
E) non- negative.

Question

Quizplus · Accepted Answer

The consumer surplus on the 100th pizza is zero because at the equilibrium price, the price paid by the consumer is equal to the maximum price they are willing to pay for that pizza.

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