Which of the following individuals is acting most like a consumer in the context of consumer surplus and willingness to pay?

• A. A person who purchases a concert ticket for \$50, even though they were willing to pay \$80.
• B. A retailer who stocks goods in anticipation of future demand.
• C. A company that sets the price of its product based on production costs.
• D. A government agency that regulates market prices.

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of consumer surplus. Consumer surplus is the difference between the maximum amount a consumer is willing to pay for a good or service and the actual price they pay.
2. Step 2: Identify the role of each individual in the options. A consumer is someone who purchases goods or services for personal use, aiming to maximize their consumer surplus.
3. Step 3: Analyze the first option: A person who buys a concert ticket for \$50 but was willing to pay \$80. This person gains a consumer surplus of \$80 - \$50 = \$30, which fits the definition of a consumer maximizing their surplus.
4. Step 4: Consider the other options: A retailer stocking goods is acting as a seller or intermediary, a company setting prices based on costs is a producer, and a government agency regulating prices is a regulator, none of which are consumers in the context of consumer surplus.
5. Step 5: Conclude that the individual acting most like a consumer in terms of consumer surplus and willingness to pay is the person purchasing the concert ticket below their maximum willingness to pay.