Consumer surplus measures
A) the extra amount that a consumer must pay to obtain a marginal unit of a good or service.
B) the excess demand that consumers have when a price ceiling holds prices below their equilibrium.
C) the benefit that consumers receive from a good or service beyond what they pay.
D) gain or loss to consumers from price fixing.
Question 2
An individual with a constant marginal utility of income will be
A) risk averse.
B) risk neutral.
C) risk loving.
D) insufficient information for a decision
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