Jeff decides that he would pay as much as $2,000 for a new laptop computer.He buys the computer and realizes a consumer surplus of $300.How much did Jeff pay for his computer?
A)$300.
B)$1,700.
C)$2,000.
D)$2,300.

Question

Quizplus · Accepted Answer

Jeff's maximum willingness to pay was $2,000 and he ended up paying less than that, so his consumer surplus is the difference between what he was willing to pay and what he actually paid. 
Consumer surplus = Maximum willingness to pay - Price paid
$300 = $2,000 - Price paid
Price paid = $2,000 - $300 = $1,700. 
Therefore, Jeff paid $1,700 for his computer.

Jeff Decides That He Would Pay as Much as $2,000