Consumer surplus arises in a market because:

A. at the market price, quantity supplied is greater than quantity demanded

B. at the current market price, quantity demanded is greater than quantity supplied.

C. some consumers are willing to pay more than the equilibrium price but do not need to do so.

D. some consumers are willing to pay less than the equilibrium price but do not need to do so.

Question

Business

Cutie

8 October, 15:47

Consumer surplus arises in a market because:

A. at the market price, quantity supplied is greater than quantity demanded

B. at the current market price, quantity demanded is greater than quantity supplied.

C. some consumers are willing to pay more than the equilibrium price but do not need to do so.

D. some consumers are willing to pay less than the equilibrium price but do not need to do so.

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Answers (1)

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Denise West · Answer 1

Consumer surplus basically means that what a consumer is willing to pay is more than what they are asked to pay or the perceived benefits of the purchase outweigh the cost of the purchase.

The answer to your question is C that some consumers are willing to pay more than the equilibrium price, but they are not asked to.