In Figure 3-6 above, income and planned expenditure are equal at

At the competitive equilibrium quantity supplied equals quantity demanded in all markets

Indicate whether the statement is true or false

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.