Which of the following statements best captures the concept of consumer surplus?
A)"I saw a sale for flowers,so I bought four bundles."
B)"I was willing to pay $30 for a dozen roses,but I bought them for $20."
C)"I was willing to pay $30 for roses,but they are selling for $35,so I did not buy."

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay for a good or service and what they actually pay for it. In option B, the consumer was willing to pay $30 for roses but bought them for $20, thus experiencing a consumer surplus of $10. Option A does not provide any information on the consumer's willingness to pay and option C shows a situation where the consumer did not experience any consumer surplus.

Which of the Following Statements Best Captures the Concept of Consumer