If Ming is willing to pay $75 to attend the Broadway production of The Lion King but actually pays $40, she receives a consumer surplus of $35.

Question

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 they pay. In this case, if Ming is willing to pay $75 but only pays $40, she is receiving a consumer surplus of $35 ($75 - $40). Therefore, the statement is true.

If Ming Is Willing to Pay $75 to Attend the Broadway