Amy buys a new horse for $1500.She receives consumer surplus of $100 on her purchase.What is her willingness to pay

Name: Amy buys a new horse for $1500.She receives consumer surplus of $100 on her purchase.What is her willingness to pay
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Her willingness to pay is the maximum amount she is willing to pay for the horse. She received a consumer surplus of $100 which means she paid $1400 ($1500 - $100) for the horse. Therefore, her willingness to pay is $1600 ($1500 + $100).

Amy Buys a New Horse for $1500