John is ready to pay $5 for an extra loaf of bread.Because of an ongoing discount in the grocery store,he gets a loaf for $2.After the discount,John's consumer surplus from the purchase is ________.
A) $2
B) $2.50
C) $3
D) $10

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay. John is willing to pay $5 but pays $2, so his consumer surplus is $5 - $2 = $3.

John Is Ready to Pay $5 for an Extra Loaf