When a buyer's willingness to pay for a good is equal to the price of the good,the
A)buyer's consumer surplus for that good is maximized.
B)buyer will buy as much of the good as the buyer's budget allows.
C)price of the good exceeds the value that the buyer places on the good.
D)buyer is indifferent between buying the good and not buying it.

Question

Quizplus · Accepted Answer

If a buyer's willingness to pay for a good is equal to the price of the good, they are indifferent between buying the good and not buying it. This means that they are not willing to pay any additional amount for the good, and any increase in price would cause them to not purchase the good. Therefore, the buyer is not maximizing their consumer surplus, nor are they necessarily buying as much of the good as their budget allows. The price is not exceeding the value that the buyer places on the good, as they are willing to pay an amount equal to the price.

When a Buyer's Willingness to Pay for a Good Is