Consumer surplus exists when a
A) person buys something with a marginal benefit less than what they paid.
B) person buys something with a marginal benefit exactly what they paid.
C) person buys something with a marginal benefit more than what they paid.
D) producer sells something for more than it is worth.
E) person buys something with a marginal cost less than what they paid.

Question

Quizplus · Accepted Answer

Consumer surplus refers to the difference between the maximum price a consumer is willing to pay for a product and the actual price they end up paying. If a person buys something with a marginal benefit more than what they paid, then they have received a benefit that exceeds the cost of the item, resulting in consumer surplus. Therefore, option C is the correct answer. Options A, B, D, and E do not properly describe consumer surplus.

Consumer Surplus Exists When a