Question

Consumer surplus exists because of the

A. surplus of money that wealthy consumers hold.

B. surplus in marginal product that firms get when they hire an additional worker.

C. willingness of some consumers to pay a price higher than the market price for some units of a good.

D. additional utility that households obtain when the prices of substitutes fall.

E. increase in the availability of goods when income rises.

Answer 1

it exists because of the increase in the availability of goods when income rises