Elvis values the first gravy sandwich at $5,the second at $4.50,and the third at $4.If he buys three sandwiches for $4 each,his consumer surplus has a value of _____
A)$4.50.
B)$1.50.
C)$13.50.
D)$9.50.
E)$12.00.

Question

Quizplus · Accepted Answer

Elvis values the first gravy sandwich at $5, the second at $4.50, and the third at $4. If he buys three sandwiches for $4 each, his total cost is $12. Therefore, his consumer surplus is the difference between his total value and total cost, which is $13.50 - $12 = $1.50. Therefore, the best choice is B.

Elvis Values the First Gravy Sandwich at $5,the Second at $4.50,and