As you consume more and more of a service,

A) your consumer surplus is increasing.
B) your consumer surplus is remaining constant.
C) your consumer surplus is decreasing.

Question

As you consume more and more of a service,A) your consumer surplus is increasing.B) your consumer surplus is remaining constant.C) your consumer surplus is decreasing.

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Final Answer : A, Explanation :  As you consume more of a service, the additional units typically provide less additional satisfaction, but if the price remains the same, the difference between what you are willing to pay and what you actually pay (consumer surplus) increases.

As you consume more and more of a service,

A) your consumer surplus is increasing.
B) your consumer surplus is remaining constant.
C) your consumer surplus is decreasing.

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Learning Objectives

Learning Objectives

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