If a person receives a consumer's surplus from the purchase of a good, it must be that
A)the amount that the person paid minus the amount that this person values that good is greater than zero.
B)the amount that the person values the good minus the amount that this person paid for that good is greater than zero.
C)the value is negative because consumers have diminishing marginal utility.
D)result is based solely on the supply of the good.

Question

Quizplus · Accepted Answer

Consumer surplus is defined as the difference between the maximum amount that a consumer is willing to pay for a good and the actual amount that the consumer pays for the good. Therefore, if a person receives a consumer surplus from the purchase of a good, it must be that the amount that the person values the good (maximum amount willing to pay) minus the amount that this person paid for that good is greater than zero.

If a Person Receives a Consumer's Surplus from the Purchase