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Consider a good that you do not like at all, perhaps turnips. Given the market price for turnips, what would be your consumer surplus?

A. Zero, unless someone actually pays you to eat them.
B. Zero, since not liking turnips at all implies an unwillingness to pay anything.
C. Some positive, but it will be a very small number.
D. Both A and B are possible.

User Blackfizz
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1 Answer

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Final answer:

Consumer surplus is zero for a good that you have no willingness to pay for, such as turnips if you do not like them. This is because consumer surplus measures the benefit consumers receive when they pay less than what they are willing to pay, which doesn't apply if you value the product at zero.

Step-by-step explanation:

Consumer surplus for a product you do not value would be B. Zero, since there's no willingness to pay.

Consumer surplus represents the difference between what consumers are willing to pay for a good or service and what they actually pay. By definition, if you do not like turnips and have no desire to consume them, your willingness to pay for turnips is zero. Consequently, regardless of the market price for turnips, you would not purchase them, implying no benefit or surplus from the transaction.

Therefore, your consumer surplus for turnips would be zero. While option A suggests a scenario where someone might pay you to eat turnips, this would be a different economic concept known as a 'negative price,' and it does not pertain to consumer surplus. Consumer surplus is inherently a measure of the value received over and above the price paid by those who actually consume the product and find utility in it.

User Kidd
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