Economists generally agree that the goal in developing the concept of consumer surplus is to:
A)make positive judgments about the desirability of market outcomes
B)make normative judgments about the desirability of market outcomes
C)measure the profit of firms producing the good
D)assess the forgone value when the price is too high

Question

Quizplus · Accepted Answer

The concept of consumer surplus is used to make normative judgments about the desirability of market outcomes. It measures the benefit to consumers in terms of the difference between what they are willing to pay for a good or service versus what they actually pay. This allows economists to assess the welfare or satisfaction consumers derive from market transactions, thus making normative judgments about whether market outcomes are desirable or not.

Economists Generally Agree That the Goal in Developing the Concept