Suppose that a customer's willingness to pay for a product is $5, and the seller's willingness to sell is $2. If the negotiated price is $4, how much is consumer surplus?

Name: Suppose that a customer's willingness to pay for a product is $5, and the seller's willingness to sell is $2. If the negotiated price is $4, how much is consumer surplus?
Brand: Quizplus
Rating: 4.7 (59 reviews)

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what the consumer is willing to pay ($5) and what they actually pay ($4), which is $1.

Suppose That a Customer's Willingness to Pay for a Product