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 $4, consumer surplus is $2.

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 $4, consumer surplus is $2.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the willingness-to-pay and the actual price paid, which in this case is $5 - $4 = $1.

Suppose That a Customer's Willingness-To-Pay for a Product Is $5