A) Necessities
B) Luxuries
C) Comforts
D) Conventional necessities
✅ ANSWER: A
Consumer surplus is highest in case of necessities. Consumer surplus happens when the price that consumers pay for a product or service is less than the price they’re willing to pay.
Consumer surplus is highest in case of necessities. Consumer surplus happens when the price that consumers pay for a product or service is less than the price they’re willing to pay.