Donna can make a chair for about $100, she charges customers $150 to buy the chair, and customers perceive that the chair is worth $225. In this case, the consumer surplus is:
A) $50.
B) $75.
C) $125.
D) $150.
E) $225.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay ($225) and what they actually pay ($150), which is $75.

Donna Can Make a Chair for About $100, She Charges