Scenario 8-1
Erin would be willing to pay as much as $100 per week to have her house cleaned. Ernesto's opportunity cost of cleaning Erin's house is $70 per week.
-Refer to Scenario 8-1. If Erin pays Ernesto $90 to clean her house, Erin's consumer surplus is
A)$80.
B)$30.
C)$20.
D)$10.

Question

Quizplus · Accepted Answer

Erin's consumer surplus is the difference between what she is willing to pay ($100) and what she actually pays ($90), which equals $10.

Scenario 8-1 Erin Would Be Willing to Pay as Much as $100