Suppose a consumer is willing and able to pay $18.00 for a particular good but only has to pay $14.00.What is the consumer surplus
A)$4.00
B)$14.00
C)$18.00
D)$32.00

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay for a good and what they actually have to pay. In this case, the consumer is willing to pay $18.00, but only has to pay $14.00, so their consumer surplus is $4.00 ($18.00 - $14.00 = $4.00). Therefore, the best choice is A) $4.00.

Suppose a Consumer Is Willing and Able to Pay $18