If a consumer has to pay his reservation price for a good, then he gets no consumer surplus from purchasing it.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the price that a consumer is willing to pay for a good (reservation price) and the actual price paid. If the consumer has to pay his reservation price, then there is no difference between the two prices and thus there is no consumer surplus.

If a Consumer Has to Pay His Reservation Price for a Good