Vijaya is willing to purchase a meal at her favorite restaurant for $30, which is the usual price. When she arrives at the restaurant, she learns that it is having a promotion and her meal is half-priced. Assuming that she was willing to pay the full price, what is Vijaya's consumer surplus?

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay. Vijaya was willing to pay $30 but only paid $15, so her consumer surplus is $15.

Vijaya Is Willing to Purchase a Meal at Her Favorite