Andrew decides that he would pay as much as $3,000 for a new laptop computer. He buys the computer and realizes consumer surplus of $700. How much did Andrew pay for his computer?
A) $700
B) $2,300
C) $3,000
D) $3,700

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay. In this case, Andrew was willing to pay up to $3,000 but he only paid enough to receive $700 in consumer surplus. Therefore, the amount he paid would be the total price of the computer ($3,000) minus the consumer surplus ($700), which equals $2,300.

Andrew Decides That He Would Pay as Much as $3,000