If the maximum price a person is willing and able to pay for a good is $50,and consumers' surplus is $20,then it follows that the price the buyer paid for the good is
A) $20
B) $70
C) $50
D) $30
E) There is not enough information to answer the question.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay and what the consumer actually pays. So, if the maximum price is $50 and the consumer surplus is $20, the price paid is $50 - $20 = $30.

If the Maximum Price a Person Is Willing and Able