If a buyer's willingness to pay for a new car is R200 000 and she is able to actually buy it for R180 000, her consumer surplus is

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the price a consumer is willing to pay and the actual price they pay. In this case, the buyer is willing to pay R200 000 but only has to pay R180 000, so her consumer surplus is R20 000 (Option B).

If a Buyer's Willingness to Pay for a New Car