Elvis values the first gravy sandwich at $5,the second at $4.50,and the third at $4.If he buys three sandwiches for $3 each,his consumer surplus has a value of _____
A)$4.50.
B)$1.50.
C)$13.50.
D)$9.50.
E)$12.00.

Question

Quizplus · Accepted Answer

The consumer surplus is the difference between what a consumer is willing to pay and what they actually pay. For the first sandwich, Elvis is willing to pay $5 but pays $3, giving a surplus of $2. For the second sandwich, he is willing to pay $4.50 but pays $3, giving a surplus of $1.50. For the third sandwich, he is willing to pay $4 but pays $3, giving a surplus of $1. Adding these up gives a total consumer surplus of $4.50.

Elvis Values the First Gravy Sandwich at $5,the Second at $4.50,and