Question

Consumer surplus indicates that...

a) more will be demanded at lower prices than at a higher prices.

b) it is impossible to increase consumer well-being by changing the way in which income is spent.

c) consumers often get more value from a good than is represented by the price they pay for that good. d) the allocation of resources is decided by the interaction of buyers and sellers. 

Answer 1

The correct solutions for this question is option A and C. Consumer surplus shows that more goods and services will be demanded at lesser prices and also the consumer get more benefits from services and goods than the cost of the products.