Figure 7-1
-Refer to Figure 7-1.The value of the good to consumers minus the cost of the good to consumers amounts to $325 if the price of the good is
A)$200.
B)$150.
C)$125.
D)$100.

Question

Figure 7-1 
-Refer to Figure 7-1.The value of the good to consumers minus the cost of the good to consumers amounts to $325 if the price of the good is
A)$200. 
B)$150. 
C)$125. 
D)$100.

Quizplus · Accepted Answer

The value of the good to consumers minus the cost of the good to consumers is the consumer surplus. If the consumer surplus is $325, it means that the price of the good is $125, as this is the price at which the difference between the value to consumers and the cost equals $325.

Figure 7-1 -Refer to Figure 7-1.The Value of the Good to Consumers