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26 August, 11:07

Consumer surplus exists when a A. person buys something with a marginal benefit more than what they paid. B. producer sells something for more than it is worth. C. person buys something with a marginal benefit exactly what they paid. D. person buys something with a marginal benefit less than what they paid. E. person buys something with a marginal cost less than what they paid.

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  1. 26 August, 13:06
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    A. person buys something with a marginal benefit more than what they paid.

    Explanation:

    Consumer surplus occurs when the price a consumer is willing to pay for a product is higher than the market price. For example if a customer is willing to pay $10 for a book, but the sale price is $8 the consumer surplus is $2.

    Since the consumer perceives he paid less than the value of the good, the marginal benefit he enjoys is more than the price paid.
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