Figure 5.1 Figure 5.1 shows Arnold's demand curve for burritos.
-Refer to Figure 5.1.If the market price is $2.00, what is the consumer surplus on the first burrito?

Question

Figure 5.1  Figure 5.1 shows Arnold's demand curve for burritos.
-Refer to Figure 5.1.If the market price is $2.00, what is the consumer surplus on the first burrito?

Quizplus · Accepted Answer

The consumer surplus is the difference between the price the consumer is willing to pay and the price they actually pay. In this case, the consumer is willing to pay $2.50 for the first burrito, but they only have to pay $2.00. Therefore, the consumer surplus is $0.50.

Figure 51 Figure 5