-The above figure shows Dana's marginal benefit curve for ice cream. If the price of ice cream is $2 per gallon and Dana is allowed to buy only 8 gallons of ice cream, then her consumer surplus on the 8th gallon is
A) $1.
B) $2.
C) $3.
D) $8.

Question

-The above figure shows Dana's marginal benefit curve for ice cream. If the price of ice cream is $2 per gallon and Dana is allowed to buy only 8 gallons of ice cream, then her consumer surplus on the 8th gallon is
A) $1. 
B) $2. 
C) $3. 
D) $8.

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay. If Dana's marginal benefit for the 8th gallon is $3 and she pays $2, her consumer surplus is $1.

-The Above Figure Shows Dana's Marginal Benefit Curve for Ice