The Wii is a wildly popular home video game console released by Nintendo. The Wii system was first available in the U.S. in November, 2006 and has sold more than 30 million units as of August 2010. The Wii retails for $199. Suppose Ahmed is willing to pay $230, Lana is willing to pay $175, and Bodie is willing to pay $300 for a Wii. What is the value of Lana's consumer surplus?
A) No consumer surplus is generated because Lana will not buy the Wii.
B) $249
C) $225
D) $24

Question

Quizplus · Accepted Answer

Lana is willing to pay $175, which is less than the retail price of $199, so she will not buy the Wii, resulting in no consumer surplus.

The Wii Is a Wildly Popular Home Video Game Console