What typically happens to consumer surplus in a perfectly competitive market?

In a perfectly competitive market, prices are determined by the forces of supply and demand, which leads to an efficient allocation of resources. Consumer surplus, defined as the difference between what consumers are willing to pay for a good or service and what they actually pay, tends to be maximized under these conditions.

When prices reflect the true equilibrium – where the quantity supplied equals the quantity demanded – consumers benefit from lower prices that are more aligned with their willingness to pay. This arrangement allows the maximum number of consumers to obtain the product at a price that gives them a surplus, thereby maximizing overall consumer satisfaction and surplus in the market.

The other options suggest conditions that either do not apply to a perfectly competitive market or do not accurately reflect the nature of consumer surplus. For instance, stating that consumer surplus is always zero is incorrect because that would imply no benefit for consumers, which does not happen in competitive markets. Fluctuating widely based on consumer perception would not accurately describe a static pricing structure found in perfect competition, while asserting that it is always negative contradicts the fundamental principles of consumer surplus, which, by definition, cannot be negative when consumers are benefitting.