Asked by
Brent Thompson
on Oct 12, 2024
Verified
Which statement is false?
A) A product's utility to a buyer is measured by how much the buyer is willing to pay for it.
B) A person would maximize her total utility when she had no consumer surplus.
C) We will consume a service when its marginal utility is equal to its price.
D) As the price of a good rises the consumer surplus decreases.
Consumer Surplus
The contrast between what consumers are equipped and willing to dish out for a good or service against what they genuinely pay.
Total Utility
The overall satisfaction or utility a consumer derives from consuming a certain quantity of goods or services.
- Understand and apply the concept of consumer surplus.
Verified Answer
MA
Learning Objectives
- Understand and apply the concept of consumer surplus.