Suppose Advik's willingness to pay for a cup of coffee is $1, which is equal to its price. Which of the following statements is true?
A) Advik is indifferent about purchasing a cup of coffee.
B) Advik will get no surplus by purchasing a cup of coffee.
C) Advik will get the same surplus whether he purchases a cup of coffee or not.
D) All of these are correct.

Question

Quizplus · Accepted Answer

When Advik's willingness to pay for a cup of coffee is equal to its price, he is indifferent about purchasing it because he values it exactly at its cost, leading to no consumer surplus. This means he gains no additional benefit from purchasing the coffee at its price, making all the provided statements correct.

Suppose Advik's Willingness to Pay for a Cup of Coffee