Figure 4-1

Figure 4-1 shows Arnold's demand curve for burritos.
-Refer to Figure 4-1.If the market price is $1.00, what is the consumer surplus on the fourth burrito?
A)$0
B)$0.50
C)$1.50
D)$2.25

Question

Figure 4-1
  
Figure 4-1 shows Arnold's demand curve for burritos.
-Refer to Figure 4-1.If the market price is $1.00, what is the consumer surplus on the fourth burrito?
A)$0 
B)$0.50 
C)$1.50 
D)$2.25

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay. If the market price is $1.00 and the consumer is willing to pay $1.00 for the fourth burrito, the consumer surplus is $0.

Figure 4-1 Figure 4-1 Shows Arnold's Demand Curve for Burritos