If Paula is willing to pay $80 for Prince's last album,and the market-equilibrium price is $70,what is consumer surplus for Paula
A)$0
B)$10
C)$70
D)$80

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay and the actual price they pay. In this case, Paula is willing to pay $80 but only has to pay $70, so her consumer surplus is $10. Therefore, the answer is B.

If Paula Is Willing to Pay $80 for Prince's Last