Figure 4.5.1
-Look at the demand curve in Figure 4.5.1. If the price of the product is $4, what is the consumer surplus from the 2nd unit?
A) $7
B) $3
C) $4
D) $1
E) $10

Question

Figure 4.5.1
-Look at the demand curve in Figure 4.5.1. If the price of the product is $4, what is the consumer surplus from the 2nd unit?
A) $7 
B) $3 
C) $4 
D) $1 
E) $10

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay for a good or service versus what they actually pay. If the price is $4 and the demand curve indicates consumers are willing to pay $7 for the 2nd unit, the consumer surplus for that unit is $7 - $4 = $3.

Figure 4.5.1 -Look at the Demand Curve in Figure 4.5.1. If the If