Ashley bought a new pair of jeans.When she walked out of the store,she thought,"I got such a great deal;I would have paid $40 more for these jeans!" This BEST represents the concept of:
A)consumer surplus.
B)producer surplus.
C)total surplus.
D)equilibrium.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good or service and the actual price they pay. In this case, Ashley values the jeans at $40 more than she actually paid, indicating that she received consumer surplus. The other options, producer surplus, total surplus, and equilibrium, do not accurately represent Ashley's situation.

Ashley Bought a New Pair of Jeans