Andrew buys yogurt, and he would be willing to pay more than he now pays. Suppose that Andrew has a change in his tastes such that he values yogurt more than before. If the market price is the same as before, then
A) Andrew's consumer surplus would be unaffected.
B) Andrew's consumer surplus would increase.
C) Andrew's consumer surplus would decrease.
D) Andrew would be wise to buy less yogurt than before.

Question

Quizplus · Accepted Answer

Andrew's consumer surplus would increase because he values yogurt more than before, meaning the difference between what he is willing to pay and what he actually pays has increased.

Andrew Buys Yogurt, and He Would Be Willing to Pay