Which of the Following Best Explains the Source of Consumer

question 74

Multiple Choice

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

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

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Definitions:

Orbitofrontal Cortex

The part of the frontal lobe situated above the orbits or eye sockets, involved in decision making and processing of rewards and punishments.

Head Direction Cells

Neurons found in several brain regions that increase their firing rates when an animal's head points in a specific direction, helping to navigate its surroundings.

Place Cells

Neurons in the hippocampus that become active when an animal is in a particular location, playing a significant role in navigation and spatial memory.