If Brock is willing to pay $500 for a new suit but is able to buy the suit for $350, his consumer surplus is:
A) $150
B) $350
C) $500
D) $850

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price that a consumer is willing to pay for a good and the actual price paid. In this case, Brock was willing to pay $500 but only had to pay $350, so his consumer surplus is $500 - $350 = $150. Therefore, the best choice is A.

If Brock Is Willing to Pay $500 for a New