Assume a person reveals the following demand conditions.At a price of $10,quantity demanded is zero; and at a price of $1,quantity demanded is 10 units.
A)The consumer surplus will be zero at a price of $10.
B)The consumer surplus will be the area under the entire demand curve.
C)The consumer surplus is zero at a price of $1.
D)Demand decreases as the price decreases.
E)The lower the price the smaller the consumer surplus.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay and what they actually pay. At a price of $10, the quantity demanded is zero, so there is no consumer surplus.

Assume a Person Reveals the Following Demand Conditions