Suppose that a customer's willingness to pay for a product is $1,480, and the seller's willingness to sell is $1,210. If the negotiated price is $1,300, how much is consumer surplus?

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the customer's willingness to pay and the negotiated price. In this case, the customer's willingness to pay is $1,480 and the negotiated price is $1,300, so the consumer surplus is $1,480 - $1,300 = $180.

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