Consumer surplus is positive as long as the:
A)money value of the marginal benefit derived from one additional unit of a good exceeds the market price.
B)market price of a good exceeds the money value of the marginal benefit derived from one additional unit of the good.
C)marginal propensity to consume is less than one.
D)marginal propensity to consume is more than one.
E)marginal propensity to consume equals one.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay for a good or service (the money value of the marginal benefit) and what they actually pay (the market price). It is positive when the willingness to pay exceeds the market price, as stated in option A.

Consumer Surplus Is Positive as Long as The