Answer to Question #205860 in Microeconomics for Thelma

Question

Consumer surplus indicates that... (4 marks) 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

c) consumers often get more value from a good than is represented by the price they pay for that good.