If Jenna buys a CD at a price of $10, she gets a consumer surplus of $20. This means she
A) does not have enough money to buy the CD
B) will not buy the CD since marginal utility is not high enough
C) was willing to pay as much as $30 for the CD
D) was willing to pay as much as $20 for the CD
E) will have $30 left over after she buys the CD

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay. If Jenna gets a consumer surplus of $20 from buying a CD for $10, it means she was willing to pay $30 for the CD.

If Jenna Buys a CD at a Price of $10