If Joel buys ten floppy disks, which are worth a total of $30 to him, and he pays $1 a disk, how much consumer surplus does he derive?
A)$24
B)$15
C)$20
D)$10
E)$2 from each floppy disk

Question

Quizplus · Accepted Answer

The total cost to Joel for the ten floppy disks is $10 ($1 per disk x 10 disks). However, he values them at $30, which means he is experiencing a consumer surplus of $20 ($30 value - $10 cost). Therefore, the correct answer is C.

If Joel Buys Ten Floppy Disks, Which Are Worth a Total