A used car was recently priced at $20,000. Seeing the car, Bobby thought, "It's nice, but if I have to pay more than $19,500 for this car, then I would rather do without it." After negotiations, Bobby purchased the car for $19,250. His consumer surplus was equal to

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Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay. Bobby was willing to pay up to $19,500 but paid $19,250, so his consumer surplus is $19,500 - $19,250 = $250.

A Used Car Was Recently Priced at $20,000