When Bob's willingness to pay for a cup of coffee is $1,and the price of a cup of coffee is $1:
A) Bob is indifferent about purchasing the coffee.
B) Bob will get no surplus by purchasing the coffee.
C) Bob will get the same surplus whether he purchases the coffee or not.
D) All of these are true.

Question

Quizplus · Accepted Answer

When Bob's willingness to pay equals the price, he is indifferent about purchasing, gets no surplus, and the surplus is the same whether he buys or not.

When Bob's Willingness to Pay for a Cup of Coffee