Figure 4-1 Figure 4-1 shows Kendra's demand curve for ice cream cones.
-Refer to Figure 4-1.If the market price is $3.00,what is the consumer surplus on the first ice cream cone?

Question

Figure 4-1  Figure 4-1 shows Kendra's demand curve for ice cream cones.
-Refer to Figure 4-1.If the market price is $3.00,what is the consumer surplus on the first ice cream cone?

Quizplus · Accepted Answer

Consumer surplus is the difference between the price a consumer is willing to pay for a good 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 4-1 Figure 4-1 Shows Kendra's Demand Curve for Ice