Figure 4-1

Figure 4-1 shows Arnold's demand curve for burritos.
-Refer to Figure 4-1.If the market price is $1.50, what is the consumer surplus on the second burrito?
A)$0.50
B)$1.00
C)$1.50
D)$3.50

Question

Figure 4-1
  
Figure 4-1 shows Arnold's demand curve for burritos.
-Refer to Figure 4-1.If the market price is $1.50, what is the consumer surplus on the second burrito?
A)$0.50 
B)$1.00 
C)$1.50 
D)$3.50

Quizplus · Accepted Answer

The consumer surplus on the second burrito is the difference between the price the consumer is willing to pay for the burrito and the market price. The consumer is willing to pay $2.00 for the burrito, as shown by the demand curve. The market price is $1.50. Therefore, the consumer surplus on the second burrito is $0.50.

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