Which of the following best explains the source of consumer surplus for a particular product?
A) Many consumers pay prices that are greater than the equilibrium price of the product.
B) Many consumers would be willing to pay more than the market price for the product.
C) Many consumers think the market price of the product is greater than its cost.
D) Many consumers think the demand for the product is elastic.

Question

Quizplus · Accepted Answer

Consumer surplus arises when consumers are willing to pay more for a product than the market price, resulting in a surplus of value for them.

Which of the Following Best Explains the Source of Consumer