Today's businesses attempt to meet the needs of which group in order to maximize consumer surplus?

• A. Suppliers who set prices above equilibrium
• B. Government regulators seeking market efficiency
• C. Competitors in the same industry
• D. Consumers whose willingness to pay exceeds the market price

Answer: (D)

Verified step by step guidance

1. Understand the concept of consumer surplus: it is the difference between what consumers are willing to pay for a good or service and what they actually pay in the market.
2. Recognize that businesses aim to maximize consumer surplus by targeting consumers whose willingness to pay is higher than the market price, as this creates value for these consumers and encourages purchases.
3. Identify that suppliers setting prices above equilibrium typically reduce consumer surplus because fewer consumers are willing to buy at higher prices.
4. Note that government regulators seek market efficiency but are not the direct focus of businesses trying to maximize consumer surplus.
5. Acknowledge that competitors influence market dynamics but businesses primarily focus on consumers to maximize consumer surplus by meeting their needs effectively.