Larry purchases a book for $10, and his consumer surplus is $3. How much is Larry willing to pay for the book?
A)$10
B)$6.5
C)$13
D)$7

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay for a good and what the consumer actually pays. If Larry's consumer surplus is $3 and he paid $10 for the book, then he was willing to pay $10 + $3 = $13 for the book.

Larry Purchases a Book for $10, and His Consumer Surplus