The consumer acquires a consumer surplus on a good if the marginal benefit is
A) less than the price.
B) greater than the price.
C) less than the marginal cost.
D) equal to the price.
E) zero.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good and the actual price they pay. In other words, it is the benefit that the consumer receives from the transaction. If the marginal benefit (the additional benefit received from consuming one more unit of the good) is greater than the price, then the consumer will be willing to pay more for the good than what they actually have to pay. This difference between the maximum price they were willing to pay and the actual price they paid is the consumer surplus. Therefore, option B is the correct answer.

The Consumer Acquires a Consumer Surplus on a Good If