The maximum Gabriel is willing to spend on a sculpture is $15,000. The sculptor sold Gabriel the sculpture for $10,000. What is Gabriel's consumer surplus?
A)$15,000
B)$10,000
C)$5,000
D)$0

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum amount a consumer is willing to pay for a product and the actual amount paid. In this case, Gabriel was willing to pay up to $15,000 for the sculpture, but he only paid $10,000. Therefore, his consumer surplus is $5,000.

The Maximum Gabriel Is Willing to Spend on a Sculpture