Figure 4-1

Figure 4-1 shows Arnold's demand curve for burritos.
-Refer to Figure 4-1.If the market price is $1.00, what is the consumer surplus on the third burrito?
A)$0.50
B)$1.00
C)$1.50
D)$7.50

Question

Figure 4-1
  
Figure 4-1 shows Arnold's demand curve for burritos.
-Refer to Figure 4-1.If the market price is $1.00, what is the consumer surplus on the third burrito?
A)$0.50 
B)$1.00 
C)$1.50 
D)$7.50

Quizplus · Accepted Answer

To find the consumer surplus on the third burrito, we need to find the highest price Arnold is willing to pay for the third burrito, which is $1.50. However, the market price is only $1.00. So, the consumer surplus on the third burrito is $1.50 - $1.00 = $0.50. Therefore, the correct answer is A) $0.50.

Figure 4-1 Figure 4-1 Shows Arnold's Demand Curve for Burritos