The price of a bag of chips is $1, but a customer is willing to pay up to $3.What would be the consumer surplus on this purchase?
A) $3
B) $1
C) $2
D) $4

Question

Quizplus · Accepted Answer

The consumer surplus is the difference between the maximum amount the consumer is willing to pay and the actual price paid. In this case, the customer is willing to pay up to $3, but the actual price is $1. Therefore, the consumer surplus is $2 ($3 - $1 = $2).

The Price of a Bag of Chips Is $1, but a Customer