Which of the following best explains the source of consumer surplus for Good A?
A)Many consumers pay prices that are greater than the equilibrium price of Good A.
B)Many consumers would be willing to pay more than the market price for some units of Good A.
C)Many consumers think the market price of Good A is greater than its cost.
D)Many consumers of Good A place a value on it that is less than the market price.

Question

Which of the following best explains the source of consumer surplus for Good A?
A)​Many consumers pay prices that are greater than the equilibrium price of Good A.
B)​Many consumers would be willing to pay more than the market price for some units of Good A.
C)​Many consumers think the market price of Good A is greater than its cost.
D)​Many consumers of Good A place a value on it that is less than the market price.

Quizplus · Accepted Answer

Consumer surplus arises when consumers are willing to pay more than the market price for some units of a good or service. Therefore, option B best explains the source of consumer surplus for Good A.

Which of the Following Best Explains the Source of Consumer