Diamonds have ________ consumer surplus because ________.
A) a smaller; fewer diamonds are sold at higher prices
B) a smaller; there is a lower marginal utility for diamonds
C) a large; diamonds are a rare and valuable stone
D) zero; diamonds have a high price and provide low total utility
E) zero; diamonds are not necessary for life

Question

Quizplus · Accepted Answer

Diamonds have a smaller consumer surplus because fewer diamonds are sold at higher prices, which limits the difference between what consumers are willing to pay and what they actually pay.

Diamonds Have ________ Consumer Surplus Because ________

Diamonds Have Consumer Surplus Because