Amanda Mendez goes to a local cafe and orders a sandwich. Her willingness to pay for that sandwich is $10. The price of the sandwich is $4. The cost to the cafe to produce that sandwich is $1. How much economic surplus does the café receive when Amanda purchases the sandwich?
A)$6
B)$4
C)$3
D)$1

Question

Quizplus · Accepted Answer

The economic surplus for the café is the difference between the price Amanda pays ($4) and the cost to produce the sandwich ($1), which is $3.

Amanda Mendez Goes to a Local Cafe and Orders a Sandwich