Which of the following is NOT an example of a price in the context of consumer surplus and willingness to pay?

• A. The maximum amount a consumer is willing to pay for a good
• B. The amount a consumer actually pays for a good
• C. The consumer's utility from consuming a good
• D. The opportunity cost of purchasing a good

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of 'price' in the context of consumer surplus and willingness to pay. Price typically refers to the monetary amount involved in a transaction, such as what a consumer pays or is willing to pay for a good.
2. Step 2: Identify examples of price: (a) The maximum amount a consumer is willing to pay represents the highest price they would accept to buy the good, which is a price concept related to willingness to pay.
3. Step 3: Recognize that the amount a consumer actually pays for a good is the market price or transaction price, which is clearly a price.
4. Step 4: Understand that the opportunity cost of purchasing a good refers to the value of the next best alternative foregone, which can be expressed in monetary terms and thus relates to price indirectly.
5. Step 5: Note that the consumer's utility from consuming a good measures satisfaction or happiness, which is a non-monetary concept and not a price. Therefore, it is NOT an example of a price.