Which of the following would lead to the creation of some consumer surplus?
A) Sam refuses to pay $10 for a haircut because it is only worth $8 to him.
B) Fred buys a car for $4000, the maximum amount that he would be willing to pay for it.
C) Danette pays $30 a month for phone service, but it is worth $70 to her.
D) When Florence purchases a candy bar for 50 cents, she uses a $20 bill to pay for it.

Question

Quizplus · Accepted Answer

Consumer surplus occurs when a consumer pays a price lower than the maximum value that they place on a product or service. In option C, Danette pays $30 for phone service, but it is worth $70 to her, creating a consumer surplus of $40.

Which of the Following Would Lead to the Creation of Some