Consumers derive consumer surplus when _____
A)the monetary value of total utility equals total expenditure.
B)the monetary value of total utility is greater than total expenditure.
C)the monetary value of total utility is less than total expenditure.
D)marginal utility is greater than total utility.
E)marginal utility is less than total utility.

Question

Quizplus · Accepted Answer

Consumer surplus occurs when the monetary value of the total utility (the satisfaction gained from consuming a good or service) is greater than the total expenditure (the money spent on purchasing the good or service). In other words, when consumers feel like they are getting more value from the product than what they paid for it, they experience a consumer surplus.

Consumers Derive Consumer Surplus When _____