The consumer surplus derived from products that have an inelastic demand is greater than that from products with an elastic demand.

Question

Quizplus · Accepted Answer

Products with inelastic demand are less sensitive to changes in price, meaning consumers are willing to pay a higher price for them. This leads to a larger consumer surplus as they are willing to pay more than the actual price. Products with elastic demand are more sensitive to price changes, and consumers are not willing to pay a higher price, resulting in a smaller consumer surplus.

The Consumer Surplus Derived from Products That Have an Inelastic