A rational consumer will only purchase a product as long as consumer surplus is not negative.

Question

Quizplus · Accepted Answer

A rational consumer will only purchase a product if the price they pay is less than the value they place on the product. This difference between what the consumer is willing to pay (or value) and what they actually pay is known as consumer surplus. If the consumer surplus is negative, the consumer would not purchase the product as it would cost more than the value they place on it. Therefore, a rational consumer will only purchase a product as long as consumer surplus is not negative.

A Rational Consumer Will Only Purchase a Product as Long