Which of the following best explains the source of consumer surplus for Good A?
A) Many consumers would be willing to pay more than the market price for some units of Good A.
B) Many consumers pay prices that are greater than the equilibrium price of Good A.
C) Many consumers of Good A place a value on it that is less than the market price.
D) Many consumers think the market price of Good A is greater than its cost.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay for a good and what they actually pay. In this case, the source of consumer surplus for Good A is that many consumers would be willing to pay more than the market price for some units of the good. This means that they are receiving a benefit by paying less than what they are willing to pay, resulting in consumer surplus.

Which of the Following Best Explains the Source of Consumer