Matt has decided to purchase his textbooks for the semester. His options are to purchase the books online with next day delivery at a cost of $175, or to drive to campus tomorrow to buy the books at the university bookstore at a cost of $170. Last week he drove to campus to buy a concert ticket because they offered 25 percent off the regular price of $16. Assume the minimum that Matt would be willing to accept to drive to campus is equal to the $4 he saved on the concert ticket. What would his economic surplus be if he bought his textbooks at the university bookstore rather than online?
A)$5
B)$1
C)$50
D)$20

Question

Quizplus · Accepted Answer

If he bought his textbooks at the university bookstore instead of online, Matt would save $5, but the cost of driving to campus would be $4, so his economic surplus would be $1.

Matt Has Decided to Purchase His Textbooks for the Semester