Consumers derive consumer surplus whenever
A)the monetary value of total utility equals total expenditure
B)the monetary value of total utility is greater than total expenditure
C)the monetary value of total utility is less than total expenditure
D)marginal utility is greater than total utility
E)marginal utility is less than total utility

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the amount that a consumer is willing to pay for a good or service and the amount that they actually have to pay. If the monetary value of total utility (satisfaction) is greater than the total expenditure (price paid), then consumers are getting more value than they have to pay for, resulting in consumer surplus.

Consumers Derive Consumer Surplus Whenever