Lee is willing and able to pay $300 for a particular MP3 player but is able to buy it for $199. Lee's consumer surplus is:
A) $0
B) $101
C) $199
D) $300

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the highest price a consumer is willing to pay for a good and the actual price they pay. 
In this case, Lee's highest willingness to pay is $300, but he is able to buy it for $199. 
So the consumer surplus is $300 - $199 = $101. 
Therefore, the best choice is B.

Lee Is Willing and Able to Pay $300 for a Particular