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

Question

Quizplus · Accepted Answer

Consumer surplus arises when consumers are able to purchase a good or service for a price lower than what they are willing to pay. In this case, many consumers would be willing to pay more than the market price for good A, resulting in consumer surplus.

Which of the Following Best Explains the Source of Consumer