Dale is willing to pay $300 for a pair of Rollerblades and he purchases them on sale for $200. His consumer surplus is valued at:

Question

Dale is willing to pay $300 for a pair of Rollerblades and he purchases them on sale for $200. His consumer surplus is valued at:​

Quizplus · Accepted Answer

Consumer surplus is the difference between the highest price a consumer is willing to pay for a product and the actual price paid. In this case, Dale was willing to pay $300 for the Rollerblades but purchased them for $200. Therefore, his consumer surplus is $100 (i.e. $300 - $200).

Dale Is Willing to Pay $300 for a Pair of Rollerblades