Alice is willing to pay $3 for the second slice of pizza she eats. The price she pays is $2. Alice's consumer surplus for this slice of pizza equals
A) $0.
B) $1.
C) $2.
D) $3.

Question

Quizplus · Accepted Answer

Alice's consumer surplus is the difference between the price she is willing to pay and the price she actually pays. In this case, she is willing to pay $3 and she pays $2, so her consumer surplus is $1.

Alice Is Willing to Pay $3 for the Second Slice