Why does nearly every purchase you make provide you with consumer surplus?
A. Because most consumers who trade in a market have a willingness to pay lower than the price, this means that few trades in a market provide consumer surplus.
B. Because most consumers who trade in a market have a willingness to pay greater than the price, this means that most trades in a market provide consumer surplus.
C. Most of the goods that a consumer purchases are expensive. Because these purchases are expensive, consumer surplus is very high.
D. Most of the goods that a consumer purchases are inexpensive. Because these purchases are inexpensive, the consumer is provided with consumer surplus.
Ans: B. Because most consumers who trade in a market have a willingness to pay greater than the price, this means that most trades in a market provide consumer surplus.
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If individuals are rational, they should choose actions that yield the:
A. smallest economic surplus. B. largest economic surplus. C. smallest total costs. D. largest total benefits.
When a firm's average cost curve lies below its average revenue curve at the profit-maximizing level of output, it implies that the firm is suffering losses
a. True b. False Indicate whether the statement is true or false
Which of the following causes stagflation?
A. Wage increases equal productivity increases, thereby setting off inflation. B. A leftward shift in the aggregate demand curve. C. Workers push costs upward and thereby initiate inflation. D. A leftward shift in the aggregate supply curve.
The only variable that can affect a movement along the demand curve is
A) income levels. B) the price of the good itself. C) the number of buyers. D) the number of substitutes.