In the context of consumer surplus and willingness to pay, consumer learning typically begins with:

• A. the retailer's decision to set a price above equilibrium
• B. an individual's assessment of the maximum price they are willing to pay for a good or service
• C. the producer's calculation of marginal cost
• D. the government's determination of market equilibrium

Answer: (B)

Verified step by step guidance

1. Understand the concept of consumer surplus, which is the difference between what a consumer is willing to pay for a good or service and what they actually pay.
2. Recognize that willingness to pay represents the maximum price an individual consumer is ready to pay for a good or service based on their preferences and perceived value.
3. Identify that consumer learning begins when an individual assesses their own willingness to pay, as this internal evaluation guides their purchasing decisions.
4. Note that other options like the retailer's pricing, producer's marginal cost, or government equilibrium setting are external factors and do not initiate consumer learning.
5. Conclude that the starting point of consumer learning is the individual's assessment of their maximum willingness to pay, which forms the basis for understanding consumer surplus.