If Maria is willing to pay $50 for a sweatshirt, how much consumer surplus does she earn if the market price for sweatshirts is $27.50 each?

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay for a product (in this case, $50) and what they actually pay for it (in this case, $27.50). Therefore, Maria's consumer surplus is $50 - $27.50 = $22.50. Option D is the closest choice to this value.

If Maria Is Willing to Pay $50 for a Sweatshirt