Figure: Monthly Demand for Ice Cream Cones (Figure: Monthly Demand for Ice Cream Cones) Look at the table Monthly Demand for Ice Cream Cones.The graph represents one individual's monthly demand for ice cream cones.At a price of $5 per cone, this individual will consume 10 cones in a month.How much consumer surplus does this consumer receive?
A)$100
B)$50
C)$150
D)$500

Question

Figure: Monthly Demand for Ice Cream Cones   (Figure: Monthly Demand for Ice Cream Cones) Look at the table Monthly Demand for Ice Cream Cones.The graph represents one individual's monthly demand for ice cream cones.At a price of $5 per cone, this individual will consume 10 cones in a month.How much consumer surplus does this consumer receive?
A)$100 
B)$50 
C)$150 
D)$500

Quizplus · Accepted Answer

Consumer surplus is the difference between the highest price a consumer is willing to pay for a good and the actual price they pay. In this case, at a price of $5 per cone, the individual is willing to consume 10 cones per month. Using the table, we can see that the individual's willingness to pay for the 10th cone is $9. Therefore, the individual's consumer surplus for the 10 cones is:
Consumer Surplus = (Willingness to Pay - Price Paid) x Quantity
= ($9 - $5) x 10
= $4 x 10
= $40
Thus, the consumer surplus the individual receives is $40 per month.