Consumers are diverse with distinct needs and wants, resulting in ________.

• A. different levels of consumer surplus among individuals
• B. identical willingness to pay for all goods
• C. no variation in market equilibrium price
• D. a perfectly elastic demand curve

Answer: (A)

Verified step by step guidance

1. Understand the concept of consumer surplus: it is the difference between what a consumer is willing to pay for a good and what they actually pay.
2. Recognize that consumers have diverse preferences, incomes, and needs, which means their willingness to pay for the same good varies.
3. Since willingness to pay differs among individuals, the amount of consumer surplus each person receives will also differ.
4. This diversity in consumer preferences leads to different levels of consumer surplus among individuals, rather than identical willingness to pay or uniform market prices.
5. Therefore, the correct completion of the sentence is that consumer diversity results in different levels of consumer surplus among individuals.