An individual's consumer surplus from some product can be eliminated entirely by: 1.raising the price until very few units are bought.
2.charging a price for each unit that is equal to the individual's marginal value for each unit.
3.raising the price until zero units are purchased.
A)1 only
B)2 only
C)3 only
D)2 or 3
E)1 or 2,but not 3.

Question

Quizplus · Accepted Answer

Charging a price equal to the individual's marginal value for each unit (option 2) or raising the price until zero units are purchased (option 3) both eliminate consumer surplus, as the consumer either pays exactly what they value each unit or stops purchasing altogether.

An Individual's Consumer Surplus from Some Product Can Be Eliminated