Brock is willing to pay $400 for a new suit,but he is able to buy the suit for $250.His consumer surplus is
A)$650.
B)$150.
C)$250.
D)$400.

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 have to pay. In this case, Brock's consumer surplus is $150 ($400 - $250). Therefore, the best choice is option B.

Brock Is Willing to Pay $400 for a New Suit,but