The Adonis Tanning Salon is running a special this month of $1 a session.Lothario Goodman goes there 15 times,instead of his customary 5.
A)His consumer surplus is larger.
B)His consumer surplus is smaller.
C)His consumer surplus is the same.
D)It cannot be determined if his consumer surplus is larger,smaller,or the same.

Question

Quizplus · Accepted Answer

Lothario Goodman's consumer surplus will be larger because he is able to receive the same service (tanning sessions) at a lower price than he normally would. The special offer of $1 a session is greater than his usual cost, so each session provides more value to him. By going 15 times instead of 5, he is able to get more value out of the special offer and therefore his consumer surplus increases.

The Adonis Tanning Salon Is Running a Special This Month