At a garage sale,Ken purchases a used bicycle for $8 when he was willing to pay $25.If the bicycle costs $75 new,Ken's consumer surplus is
A)$50.
B)$67.
C)$17.
D)$33.
E)$0.

Name: At a garage sale,Ken purchases a used bicycle for $8 when he was willing to pay $25.If the bicycle costs $75 new,Ken's consumer surplus is A)$50. B)$67. C)$17. D)$33. E)$0.
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Question

Quizplus · Accepted Answer

Ken's maximum willingness to pay was $25, but he only had to pay $8, giving him a consumer surplus of $17 ($25-$8).

At a Garage Sale,Ken Purchases a Used Bicycle for $8