At point b in Exhibit 6-9, total utility is valued at
A) $30, consumer expenditure is $20, and consumer surplus is $10
B) $26, consumer expenditure is $20, and consumer surplus is $6
C) $20, consumer expenditure is $20, and consumer surplus is $0
D) $30, consumer expenditure is $4, and consumer surplus is $26
E) $20, consumer expenditure is $4, and consumer surplus is $16

Question

Quizplus · Accepted Answer

At point b, the consumer is willing to pay $30 for the good, but they only have to pay $20. This means that they have a consumer surplus of $10.

At Point B in Exhibit 6-9, Total Utility Is Valued