Suppose Debbie is willing to pay $50 for a pair of shoes but has to pay $20 because the shoes are on sale. Her consumer surplus is:
A)$50.
B)$20.
C)$70.
D)$30.
E)$25.

Question

Suppose Debbie is willing to pay $50 for a pair of shoes but has to pay $20 because the shoes are on sale. Her consumer surplus is:​
A)$50.
B)$20.
C)$70.
D)$30.
E)$25.

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good or service and the actual price paid. In this case, Debbie was willing to pay $50 for the shoes but only had to pay $20 because of the sale. Therefore, her consumer surplus is $30 ($50 - $20).

Suppose Debbie Is Willing to Pay $50 for a Pair