Michael values a stainless steel refrigerator for his new house at $3,500,but he succeeds in buying one for $3,000.Michael's consumer surplus is
A)$500.
B)$3,000.
C)$3,500.
D)$6,500.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum amount a consumer is willing to pay for a good or service and the actual price they pay. In this case, Michael was willing to pay $3,500 but only had to pay $3,000. Therefore, his consumer surplus is $500 (the difference between the two).

Michael Values a Stainless Steel Refrigerator for His New House