Age, education level, income, and taste are all examples of how consumer groups:

• A. determine the supply of goods in a market
• B. always experience the same consumer surplus
• C. are unaffected by changes in market prices
• D. differ in their willingness to pay for goods and services

Answer: (D)

Verified step by step guidance

1. Understand that consumer groups can be categorized by characteristics such as age, education level, income, and taste, which influence their preferences and purchasing behavior.
2. Recognize that willingness to pay refers to the maximum amount a consumer is ready to spend on a good or service, which varies across different consumer groups due to their unique characteristics.
3. Analyze how differences in willingness to pay among consumer groups affect demand curves, causing shifts or changes in the quantity demanded at various prices.
4. Note that consumer surplus, which is the difference between what consumers are willing to pay and what they actually pay, will differ among groups because of their varying willingness to pay.
5. Conclude that these differences in willingness to pay explain why consumer groups do not always experience the same consumer surplus and why they respond differently to changes in market prices.