If the price was $6,her consumer surplus would be
A)$40.
B)$30.
C)$10.
D)$6.
E)None of the choices are true.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum amount a consumer is willing to pay for a product and the actual price paid. Here, we don't have information about the maximum amount the consumer is willing to pay, but we know that the price is $6. Since the consumer is paying less than what she would be willing to pay (otherwise she wouldn't buy the product), her consumer surplus is positive. Therefore, her consumer surplus is $10, which is the difference between her willingness to pay and the actual price ($16 - $6 = $10).

If the Price Was $6,her Consumer Surplus Would Be