Figure 4-3 Figure 4-3 shows Kendra's demand curve for ice cream cones.
-Refer to Figure 4-3. If the market price is $3.00, what is the consumer surplus on the first ice cream cone?
A) $0.50
B) $1.00
C) $5.50
D) $9.00

Question

Figure 4-3  Figure 4-3 shows Kendra's demand curve for ice cream cones.
-Refer to Figure 4-3. If the market price is $3.00, what is the consumer surplus on the first ice cream cone?
A) $0.50 
B) $1.00 
C) $5.50 
D) $9.00

Quizplus · Accepted Answer

The consumer surplus is the difference between the price the consumer is willing to pay and the price they actually pay. In this case, the consumer is willing to pay $5.50 for the first ice cream cone, but they only have to pay $3.00. Therefore, the consumer surplus is $5.50 - $3.00 = $2.50.

Figure 4-3 Figure 4-3 Shows Kendra's Demand Curve for Ice