At a garage sale,Dominique purchases a sewing machine for $30 when she was willing to pay $55.If the sewing machine costs $200 new,Dominique's consumer surplus would be
A)$0.
B)$25.
C)$120.
D)$145.
E)$170.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the price a consumer is willing to pay for a good and the price they actually pay. In this case, Dominique was willing to pay $55 for the sewing machine, but she only paid $30. Therefore, her consumer surplus is $55 - $30 = $25.

At a Garage Sale,Dominique Purchases a Sewing Machine for $30