If a consumer places a value of $15 on a particular good and if the price of the good is $17,then the
A)consumer has consumer surplus of $2 if he or she buys the good.
B)consumer does not purchase the good.
C)market is not a competitive market.
D)price of the good will fall due to market forces.

Question

Quizplus · Accepted Answer

The consumer values the good at $15 and the price is $17, meaning the consumer is willing to pay less than the market price. Therefore, the consumer would not purchase the good, resulting in no consumer surplus.

If a Consumer Places a Value of $15 on a Particular