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    Question

    Consumer surplus is highest in the case of ________.

    A Durable goods Correct Answer Incorrect Answer
    B Luxuries Correct Answer Incorrect Answer
    C Comforts Correct Answer Incorrect Answer
    D Necessities Correct Answer Incorrect Answer

    Solution

    Consumer surplus, the difference between what consumers are willing to pay and what they actually pay, is highest for necessities, as these goods have a high perceived value.

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