-In the above figure, the individual's consumer surplus will be highest if
A) the price of ice cream is $5 per gallon.
B) the price of ice cream is $3 per gallon.
C) the price of ice cream is $2 per gallon.
D) ice cream is free.

Question

-In the above figure, the individual's consumer surplus will be highest if
A) the price of ice cream is $5 per gallon. 
B) the price of ice cream is $3 per gallon. 
C) the price of ice cream is $2 per gallon. 
D) ice cream is free.

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay and what they actually pay. It is highest when the price is lowest, so it is maximized when ice cream is free.

-In the Above Figure, the Individual's Consumer Surplus Will Be