If consumers paid an amount for any good that reflected the value ...

[imanialler]

If consumers paid an amount for any good that reflected the value of the total benefits they receive from consuming it, then
 a. consumer surplus would be at a maximum
  b. consumer surplus would be equal to zero
  c. total revenue would equal variable cost
  d. consumer surplus would equal producer surplus
  e. producer surplus would exceed consumer surplus

Question 2

If an individual's demand is elastic and price increases, what happens to total utility (TU), marginal utility (MU), consumer surplus (CS), and total expenditure (TE)?
 a. TU increases, MU decreases, CS decreases, and TE decreases
  b. TU increases, MU increases, CS increases, and TE decreases
  c. TU decreases, MU increases, CS decreases, and TE increases
  d. TU decreases, MU decreases, CS decreases, and TE decreases
  e. TU decreases, MU increases, CS decreases, and TE decreases

[bd5255]

Answer to Question 1

B

Answer to Question 2

E

[imanialler]

YES! Correct, THANKS for helping me on my review

[bimper21]

Thanks for the timely response, appreciate it