Consumer's surplus exists only for the last unit of a good that a buyer has purchased.

Question

Quizplus · Accepted Answer

Consumer's surplus exists for all units of a good that a buyer has purchased, not just the last unit. Consumer's surplus is the difference between the maximum price a consumer is willing to pay for a good and the actual price they pay. As long as the actual price they pay is lower than the maximum price they are willing to pay, consumer's surplus exists.

Consumer's Surplus Exists Only for the Last Unit of a Good