Use the following to answer question:
-(Table: Willingness to Pay for Peanuts)Using the table Willingness to Pay for Peanuts,if the price of a bag of peanuts is $4,what is the value of George's consumer surplus?
A)$4
B)$3
C)$6
D)$10

Question

Use the following to answer question: 
-(Table: Willingness to Pay for Peanuts)Using the table Willingness to Pay for Peanuts,if the price of a bag of peanuts is $4,what is the value of George's consumer surplus?
A)$4 
B)$3 
C)$6 
D)$10

Quizplus · Accepted Answer

To calculate George's consumer surplus, we need to find the difference between the maximum amount he is willing to pay and the actual price he paid. From the table, we see that George is willing to pay up to $10 for a bag of peanuts. However, he only paid $4, so his consumer surplus is $10 - $4 = $6. Therefore, the best choice is C.

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