If you pay a total of $10 to purchase 2 units of a good and you would have been willing to pay $14, then
A)you receive a consumer surplus of $4.
B)you experience a paradox of value.
C)you receive a consumer surplus of $2.
D)you do not have consumer sovereignty.
E)your demand factor is $2 per unit.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the total amount a consumer is willing to pay for a good or service and the total amount they actually pay. In this case, you were willing to pay $14 but only paid $10, so your consumer surplus is $4.

If You Pay a Total of $10 to Purchase 2