Cameron visits a sporting goods store to buy a new set of golf clubs.He is willing to pay $750 for the clubs but buys them on sale for $575.Cameron's consumer surplus from the purchase is
A)$175.
B)$575.
C)$750.
D)$1,325.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the price a consumer is willing to pay for a product and the actual price they pay. In this case, Cameron was willing to pay $750 for the golf clubs but ended up paying only $575, giving him a consumer surplus of $175 ($750 - $575 =$175). Therefore, the correct answer is A) $175. Choice B, C and D are not correct as they do not represent Cameron's actual consumer surplus.

Cameron Visits a Sporting Goods Store to Buy a New