In all markets consumer surplus measures the economic wellbeing in that market.

Question

Quizplus · Accepted Answer

Consumer surplus measures the difference between what consumers are willing to pay for a good or service and what they actually pay, which is one aspect of economic wellbeing. However, economic wellbeing in a market also includes producer surplus and can be influenced by factors such as market power, externalities, and distributional equity, which consumer surplus alone does not capture.

In All Markets Consumer Surplus Measures the Economic Wellbeing in That