The difference between the marginal benefit from a new pair of shoes and the price of the new pair of shoes is
A) the consumer surplus from that pair of shoes.
B) what we get.
C) what we have to pay.
D) the price when the marginal benefit is maximized.
E) the consumer's expenditure on the shoes.

Question

Quizplus · Accepted Answer

The marginal benefit from a new pair of shoes is the additional satisfaction or utility the consumer gets from buying the shoes. The price of the new pair of shoes is the cost the consumer incurs to acquire the shoes. The difference between the marginal benefit and the price is the consumer surplus, which is the measure of the satisfaction that the consumer gets from the purchase, over and above the cost incurred to make the purchase. Therefore, the best choice is A.

The Difference Between the Marginal Benefit from a New Pair