Exhibit 6-11
-At point a in Exhibit 6-11, consumer surplus is
A) $0
B) $5
C) $6
D) $20
E) $26

Question

Exhibit 6-11 
-At point a in Exhibit 6-11, consumer surplus is
A) $0 
B) $5 
C) $6 
D) $20 
E) $26

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a product and the actual price paid. At point a in Exhibit 6-11, the demand curve intersects the price axis at $6. Therefore, the maximum price the consumer is willing to pay at this quantity is $6. The actual price paid is $1, so the consumer surplus is $6 - $1 = $5.

Exhibit 6-11 -At Point a in Exhibit 6-11, Consumer Surplus Is