Juanita goes to the Hardware Emporium to buy a new circular saw.She is willing to pay $120 for a new saw,but buys one on sale for $85.Juanita's consumer surplus from the purchase is
A)$35.
B)$85.
C)$120.
D)$205.

Question

Quizplus · Accepted Answer

Juanita's consumer surplus can be calculated as the difference between the maximum amount she was willing to pay ($120) and the actual price she paid ($85). 
Consumer surplus = Maximum amount willing to pay - Actual price paid 
Consumer surplus = $120 - $85 
Consumer surplus = $35 
Therefore, the best choice is A) $35 as this represents Juanita's consumer surplus from the purchase.

Juanita Goes to the Hardware Emporium to Buy a New