An individual's consumer surplus from some product can be eliminated entirely by:
1. raising the price until very few units are bought.
2. charging a price for each unit that is equal to the individual's marginal value for each unit.
3. raising the price until zero units are purchased.
A) 1 only
B) 2 only
C) 3 only
D) 2 or 3
E) 1, 2, & 3.

Question

Quizplus · Accepted Answer

Charging a price equal to the individual's marginal value for each unit (2) or raising the price until zero units are purchased (3) both eliminate consumer surplus.

An Individual's Consumer Surplus from Some Product Can Be Eliminated