Alice is willing to pay $3 for the second slice of pizza she eats. The price she pays is $2. Alice's consumer surplus for this slice of pizza equals
A) $0.
B) $3.
C) $1.
D) $2.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay. Alice is willing to pay $3 but pays $2, so her consumer surplus is $3 - $2 = $1.

Alice Is Willing to Pay $3 for the Second Slice