Sharon is bidding on a new camera on an internet auction. She values the camera at $300 and wins the auction with a bid of $300, therefore:
A) Sharon's willingness to pay is $300 and her consumer surplus is 0
B) Sharon's willingness to pay is $300 and her consumer surplus is $300
C) Sharon's willingness to pay is $150 and her consumer surplus is $150
D) Sharon's willingness to pay is $150 and her consumer surplus is $0

Question

Quizplus · Accepted Answer

Sharon's willingness to pay is $300, and since she paid exactly that amount, her consumer surplus is 0.

Sharon Is Bidding on a New Camera on an Internet