Which of the Following Best Explains the Source of Consumer

question 3

Multiple Choice

Which of the following best explains the source of consumer surplus for a good?

• A) Many consumers would be willing to pay more than the market price for the good.
• B) Many consumers pay prices that are greater than the equilibrium price of the good.
• C) Many consumers think the market price of the good is greater than its cost.
• D) Many consumers think the price elasticity of demand for the good is unit elastic.

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Definitions:

Benchmarking

In a search for excellence, taking the absolute best as a standard and trying to surpass it; objectively evaluating what an organization does compared with what its best competitors do and then taking steps to meet or exceed that high standard. Fundamental benchmark measures are product quality (what is produced) and service quality (how one deals with customers).

Criteria

Standards or rules by which something can be judged or decided.

Statesmanship

The ability to work with and through other people, based on mastery of human relations skills and use of the four-step method to solve problems; an important element of leadership performance.

Leadership Performance

The effectiveness with which a leader guides their organization or team towards achieving its goals.