If the amount paid for a good by consumers reflected the value of the total benefits they receive from consuming it,_____
A)the value of the total utility derived from the consumption of the good exceeds the total spending on the good.
B)the value of consumer surplus would be zero.
C)the marginal valuation of the good would be irrational.
D)the value of the total utility derived from the consumption of the good would be equal to zero.
E)the value of the marginal utility of an additional unit of the good would be negative.

Question

Quizplus · Accepted Answer

When the amount paid for a good by consumers reflects the total benefits they receive, it means consumers are paying exactly what the good is worth to them, leaving no consumer surplus. Consumer surplus occurs when consumers value a good more than what they paid for it.

If the Amount Paid for a Good by Consumers Reflected