The total value that Doug places on his consumption of computer games equals
A)the price multiplied by quantity demanded.
B)his marginal utility multiplied by quantity demanded.
C)price times marginal value.
D)the total amount he pays for all the games he purchases.
E)his total expenditure on computer games plus his consumer surplus.

Question

Quizplus · Accepted Answer

The total value that Doug places on his consumption of computer games would include both the amount he spends on the games (his total expenditure) as well as the additional satisfaction he gets from consuming the games beyond what he paid (his consumer surplus). Therefore, the correct choice is E.

The Total Value That Doug Places on His Consumption of Computer