-The figure above shows Diane's demand curve for soft drinks. The price of a soft drink is $1.00. Diane's consumer surplus from her 10th soft drink is
A) $2.50.
B) $1.50.
C) $0.50.
D) $1.00.
E) $0.00.

Question

-The figure above shows Diane's demand curve for soft drinks. The price of a soft drink is $1.00. Diane's consumer surplus from her 10th soft drink is
A) $2.50. 
B) $1.50. 
C) $0.50. 
D) $1.00. 
E) $0.00.

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay for a good and what the consumer actually pays. At the 10th soft drink, Diane is willing to pay $1.50 (as indicated by the demand curve), but she only pays $1.00. Therefore, her consumer surplus for the 10th soft drink is $1.50 - $1.00 = $0.50.

-The Figure Above Shows Diane's Demand Curve for Soft Drinks