If Joel buys ten fidget spinners,which are worth a total of $30 to him,and he pays $1 per spinner,his consumer surplus is _____
A)$24.00.
B)$15.00.
C)$20.00.
D)$10.00.
E)$30.00.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the total amount a consumer is willing to pay and the total amount they actually pay.

In this case, Joel values each fidget spinner at $3 ($30 total cost/10 spinners). However, he only had to pay $1 per spinner, which means his consumer surplus is $2 per spinner.

Therefore, his total consumer surplus for 10 spinners is: 
$2 x 10 spinners = $20

So, the best choice is C - $20.00.

If Joel Buys Ten Fidget Spinners,which Are Worth a Total