Consumer surplus
A)will definitely be low for inexpensive goods.
B)will definitely be high for inexpensive goods.
C)will definitely be low for expensive goods.
D)will definitely be high for expensive goods.
E)may be low or high for any type of good, expensive or inexpensive, depending on the characteristics of demand.

Question

Quizplus · Accepted Answer

Consumer surplus can be either low or high depending on the characteristics of demand. It is the difference between the maximum price a consumer is willing to pay for a good or service and the actual price they pay. Therefore, if a consumer is willing to pay a high price for a good, but the actual price is low, the consumer surplus will be high. Conversely, if a consumer is only willing to pay a low price for a good, the consumer surplus will be low. Therefore, it is possible for consumer surplus to be high or low for any type of good, regardless of its price.

Consumer Surplus