Suppose that a consumer's total benefit is $4 for consuming one cup of ice cream and $7 for consuming two cups of ice cream. The consumer's willingness to pay for the second cup of ice cream is
A)$0.
B)$3.
C)$4.
D)$7.
E)$11.

Question

Quizplus · Accepted Answer

The consumer's willingness to pay for the second cup of ice cream is the additional amount they are willing to pay beyond what they paid for the first cup. Since the total benefit for one cup is $4 and for two cups is $7, the additional benefit (and thus willingness to pay) for the second cup is $7 - $4 = $3.

Suppose That a Consumer's Total Benefit Is $4 for Consuming