Gene buys a new medium-format camera for $1000.He receives consumer surplus of $20 on his purchase.Gene's willingness to pay is:
A)$20
B)$1000
C)$1020
D)$980

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay. Since Gene receives a consumer surplus of $20 and pays $1000, his willingness to pay is $1000 + $20 = $1020.

Gene Buys a New Medium-Format Camera for $1000