You find a treasure chest with a big lock on it. After rushing to the local hardware store you find a sledge hammer for $9.49. You say out loud, "Wow I would have paid $500 for this!" This statement is an illustration of:
A)total value.
B)marginal cost.
C)consumer surplus.
D)marginal value.

Question

Quizplus · Accepted Answer

This statement is an example of consumer surplus, which is the difference between what a consumer is willing to pay for a good and what they actually pay for it. In this case, the consumer is willing to pay $500 for a sledgehammer but only has to pay $9.49 for it, resulting in a consumer surplus.

You Find a Treasure Chest with a Big Lock on It