If James is willing to sell an extra concert ticket for $40 but actually sells it for $100, his consumer surplus is $60.

Question

Quizplus · Accepted Answer

The consumer surplus is the difference between the price a consumer is willing to pay and the actual price they pay. In this scenario, James was willing to sell the ticket for $40, but he actually sold it for $100. Therefore, the consumer surplus would be $40 (the amount he was willing to pay) minus $100 (the actual amount he paid), which equals -$60. There is no consumer surplus in this scenario.

If James Is Willing to Sell an Extra Concert Ticket