Use the following to answer question(s): Measuring Consumer Surplus

-(Exhibit: Measuring Consumer Surplus) If pizzas are $6 each, your consumer surplus is:
A) $24.
B) $16.
C) $8.
D) $4.

Question

Use the following to answer question(s): Measuring Consumer Surplus
 
-(Exhibit: Measuring Consumer Surplus) If pizzas are $6 each, your consumer surplus is:
A) $24. 
B) $16. 
C) $8. 
D) $4.

Quizplus · Accepted Answer

Based on the exhibit, the point where the demand curve intersects with the price of $6 is at a quantity of 2 pizzas. At 2 pizzas, the willingness to pay is $10, but the price is only $6, resulting in a consumer surplus of $4 per pizza. Therefore, the consumer surplus for 4 pizzas is $4 x 4 = $16. But since the question is asking for the consumer surplus for each pizza, we divide $16 by 4 pizzas, which equals $4 per pizza. Thus, the correct answer is C.

Use the Following to Answer Question(s): Measuring Consumer Surplus