What consumer surplus is received by someone whose willingness to pay is $35 below the market price of a good?
A) $35
B) $0
C) ($35 × P*)
D) None of these are correct.

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 someone's willingness to pay is below the market price, they would not purchase the good, resulting in a consumer surplus of $0.

What Consumer Surplus Is Received by Someone Whose Willingness to Pay