Figure 5.1 Figure 5.1 shows Arnold's demand curve for burritos.
-Refer to Figure 5.1.If the market price is $1.50, what is Arnold's consumer surplus?

Question

Figure 5.1  Figure 5.1 shows Arnold's demand curve for burritos.
-Refer to Figure 5.1.If the market price is $1.50, what is Arnold's consumer surplus?

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay. If Arnold's willingness to pay is higher than $1.50, the surplus is the difference between his willingness to pay and $1.50.

Figure 51 Figure 5