A used truck has a sticker price of $21,000. Arthur decided that he would pay no more than $19,500 for this truck. He bought the truck for $19,250. Arthur obtained a consumer surplus of
A)$21,000.
B)$19,500.
C)$19,250.
D)$1,750.
E)$250.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay. Arthur was willing to pay $19,500 but paid $19,250, so his consumer surplus is $19,500 - $19,250 = $250.

A Used Truck Has a Sticker Price of $21,000