Charlene is willing to pay $5.00 for a sandwich. If the price of a sandwich is ________, Charlene ________.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good or service and the actual price paid. In this case, Charlene is willing to pay $5.00 for a sandwich, so if the price is $4.00, she will receive a consumer surplus of $1.00 ($5.00-$4.00). If the price is higher than $5.00, she will not receive any consumer surplus, and if the price is lower than $4.00, she will receive a larger consumer surplus, but the question does not give us any information to determine what that might be.

Charlene Is Willing to Pay $5