A new car has a sticker price of $35,000. Fred decided that he would pay no more than $32,000 for this car. He bought the car for $31,000. Fred obtained a consumer surplus of
A)$35,000.
B)$32,000.
C)$4,000.
D)$3,000.
E)$1,000.

Question

Quizplus · Accepted Answer

Fred's consumer surplus is the difference between what he was willing to pay ($32,000) and what he actually paid ($31,000), which is $1,000.

A New Car Has a Sticker Price of $35,000