For a rational consumer, the consumer's surplus will never be a negative number.

Name: For a rational consumer, the consumer's surplus will never be a negative number.
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Question

Quizplus · Accepted Answer

A rational consumer will only purchase a good or service if the price is lower than the maximum amount they are willing to pay. Therefore, their consumer surplus (the difference between what they are willing to pay and what they actually pay) will always be a positive number or zero, but never negative.

For a Rational Consumer, the Consumer's Surplus Will Never Be