Suppose that a customer's willingness to pay for a product is $5, and the seller's willingness to sell is $2. If the negotiated price is $3, how much is consumer surplus?

Name: Suppose that a customer's willingness to pay for a product is $5, and the seller's willingness to sell is $2. If the negotiated price is $3, how much is consumer surplus?
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Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the willingness to pay and the actual price paid. Here, it is $5 - $3 = $2.

Suppose That a Customer's Willingness to Pay for a Product