Consumer Surplus Is Zero When a Consumer Pays a Price

question 83

True/False

Consumer surplus is zero when a consumer pays a price equal to the market equilibrium price.

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Definitions:

Inelastic

A term describing a situation where the demand or supply for a good or service is relatively unresponsive to changes in price.

Elastic

Describes a situation in which the demand or supply of a product is sensitive to changes in price, meaning a small change in price leads to a large change in the quantity demanded or supplied.

Supply Curve

A graphical representation of the relationship between the price of a good and the quantity of the good supplied.

Demand Curve

A graphical representation showing the inverse relationship between the price of a good or service and the quantity demanded by consumers.