Multiple Choice
Which of the following statements is TRUE? I. Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good or service and its market price. II. Mr. Bill is willing to pay $10 for two pounds of clay. If the market price per pound of clay is $2.50, his consumer surplus is $7.50. III. Total consumer surplus is represented graphically by the area beneath the demand curve and above the market price.
A) I only
B) II only
C) I and III only
D) I, II, and III
Correct Answer:
Verified
Correct Answer:
Verified
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