Figure 4-1 shows Arnold's demand curve for burritos.
-Refer to Figure 4-1. If the market price is $1.50, what is the consumer surplus on the second burrito?

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay and what they actually pay. For the second burrito, if consumers are willing to pay $2.00 (as implied by the question context, though the figure is not shown) and the market price is $1.50, the consumer surplus is $0.50.

Figure 4-1 Shows Arnold's Demand Curve for Burritos