-The figure above shows Clara's demand for CDs. If the price for a CD is $15, then Clara
A) receives no consumer surplus on the 6th CD she buys.
B) receives a total of $10 of consumer surplus.
C) will buy no CDs.
D) receives a total of $40 of consumer surplus.

Question

-The figure above shows Clara's demand for CDs. If the price for a CD is $15, then Clara
A) receives no consumer surplus on the 6th CD she buys. 
B) receives a total of $10 of consumer surplus. 
C) will buy no CDs. 
D) receives a total of $40 of consumer surplus.

Quizplus · Accepted Answer

Clara receives no consumer surplus on the 6th CD she buys because consumer surplus is the difference between what she is willing to pay and what she actually pays. If the price is $15, and she is willing to pay exactly $15 for the 6th CD, then her consumer surplus for that CD is zero.

-The Figure Above Shows Clara's Demand for CDs