Jane is willing to pay $50 for a pair of shoes. The actual price of the shoes is $30. Her consumer surplus on this pair of shoes is

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good and the actual price they pay. In this case, Jane is willing to pay $50 for the shoes, but the actual price is $30. Therefore, her consumer surplus is $50 - $30 = $20.

Jane Is Willing to Pay $50 for a Pair of Shoes