If the price a buyer pays for a good is $50 and the maximum price she would be willing and able to pay is $53,then ____________ is _______________.
A) producers' surplus; $103
B) consumers' surplus; $103
C) consumers' surplus; $3
D) producers' surplus; $3
E) consumers' surplus; $40

Question

Quizplus · Accepted Answer

The difference between the maximum price a buyer is willing to pay and the actual price paid is known as consumer surplus. In this case, the maximum price the buyer is willing to pay is $53, but she only paid $50, resulting in a consumer surplus of $3. Therefore, the answer is C) consumers' surplus; $3.

If the Price a Buyer Pays for a Good Is