Charlie is willing to pay $12 for a T-shirt that is priced at $10. If Charlie buys the T-shirt, then his consumer surplus is
A)$2.
B)$12.
C)$22.
D)more than $10.
E)$120.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay. Charlie is willing to pay $12 but pays $10, so his consumer surplus is $12 - $10 = $2.

Charlie Is Willing to Pay $12 for a T-Shirt That