Ed is willing to pay a maximum of $200 for a sport coat but buys one for $180.The $20 saved is _____

Name: Ed is willing to pay a maximum of $200 for a sport coat but buys one for $180.The $20 saved is _____
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The $20 saved is Ed's consumer surplus, which is the difference between his maximum willingness to pay and the actual price he pays. In this case, his maximum willingness to pay was $200, and he paid $180, so his consumer surplus is $20.

Ed Is Willing to Pay a Maximum of $200 for a Sport