If a customer had to pay a $5 entry charge to get into a roller coaster theme park, and then pay $2 per ride, she would get less consumer surplus than if she was able to pay $2 per ride with no entry charge.

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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 the customer has to pay a $5 entry charge, they are already paying more than they would if there was no entry charge. Therefore, the consumer surplus would be lower in this scenario compared to if they only paid $2 per ride with no entry charge.

If a Customer Had to Pay a $5 Entry Charge