Suppose that a customer's willingness-to-pay for a product is $79, and the seller's willingness-to-sell is $64. If the negotiated price is $68, how much is consumer surplus?

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the customer's willingness-to-pay and the negotiated price. In this case, the customer's willingness-to-pay is $79 and the negotiated price is $68, so the consumer surplus is $79 - $68 = $11.

Suppose That a Customer's Willingness-To-Pay for a Product Is $79