Suppose Dan is willing to pay a maximum of $3,000 for a piano,but finds one he can buy for $2,500.Dan's consumer surplus from this piano is
A) $5,500.
B) $3,000.
C) $2,500.
D) $500.
E) zero because he buys the piano.

Question

Quizplus · Accepted Answer

Dan's consumer surplus is the difference between the most he was willing to pay ($3,000) and what he actually paid ($2,500). So, his consumer surplus is $3,000 - $2,500 = $500. Therefore, the best choice is D.

Suppose Dan Is Willing to Pay a Maximum of $3,000