The value of a slice of pizza to a consumer is equal to
A) its marginal benefit.
B) the maximum price the consumer is willing to pay.
C) the consumer surplus.
D) Both answers A and B are correct.
E) Both answers B and C are correct.

Question

Quizplus · Accepted Answer

The value of a slice of pizza to a consumer is equivalent to its marginal benefit, which is the maximum price that a consumer is willing to pay. Therefore, both answers A and B are correct. Consumer surplus is the difference between the price paid for a good and the maximum price a consumer is willing to pay for that good. So, while it is related to the value of the pizza slice to the consumer, it is not the same thing, making answer E incorrect.

The Value of a Slice of Pizza to a Consumer