Solved

When Will Consumers' Surplus Overstate the Actual Gains Received by Consumers

Question 15

Multiple Choice

When will consumers' surplus overstate the actual gains received by consumers?


A) When allocation decisions are not made on the basis of price.
B) When the commodity is not equally divided among consumers.
C) When all consumers place the same marginal value on the good.
D) When the distribution of goods is Pareto optimal.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions