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.