Consumer surplus is created when
A) a person trades away a good that yields diminishing marginal utility
B) a person's total utility increases when consuming an additional unit of a good
C) a good is purchased at a price that is less than the price the consumer would have been willing to pay
D) the total utility of a good is greater than its marginal utility
E) many consumers want to buy a good and the price goes up

Question

Quizplus · Accepted Answer

Consumer surplus occurs when a consumer is able to purchase a good for a price that is lower than the maximum price they were willing to pay, thus gaining additional utility or satisfaction from the transaction.

Consumer Surplus Is Created When