Charlie is willing to pay $10 for a T-shirt that is priced at $9. If Charlie buys the T-shirt, then his consumer surplus is
A) $19.
B) $0.90.
C) $90.
D) $1.

Name: Charlie is willing to pay $10 for a T-shirt that is priced at $9. If Charlie buys the T-shirt, then his consumer surplus is A) $19. B) $0.90. C) $90. D) $1.
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Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay. Charlie is willing to pay $10 but pays $9, so his consumer surplus is $1.

Charlie Is Willing to Pay $10 for a T-Shirt That