The following table shows the marginal benefit that Marcus derives by consuming different quantities of hotdog and soda. The price of a hotdog is $3, and the price of a soda is $1.

-Refer to the table above.If Marcus consumes 3 hotdogs and 0 sodas -not necessarily his optimal choice- how much consumer surplus is he enjoying?
A) $27
B) $9
C) $6
D) $24

Question

The following table shows the marginal benefit that Marcus derives by consuming different quantities of hotdog and soda. The price of a hotdog is $3, and the price of a soda is $1.
 
-Refer to the table above.If Marcus consumes 3 hotdogs and 0 sodas -not necessarily his optimal choice- how much consumer surplus is he enjoying?
A) $27 
B) $9 
C) $6 
D) $24

Quizplus · Accepted Answer

Consumer surplus is the difference between the price a consumer is willing to pay for a good and the price they actually pay. In this case, Marcus is willing to pay $9 for a hotdog, but he only has to pay $6. Therefore, his consumer surplus is $3 per hotdog. Since he consumes 3 hotdogs, his total consumer surplus is $9.

The Following Table Shows the Marginal Benefit That Marcus Derives