Suppose Sam buys a good for $100 at a yard sale. If consumer surplus from the sale is $75, Sam would have been willing to pay:
A) $100.
B) $175.
C) $25.
D) equal to the deadweight loss.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what the consumer is willing to pay and what they actually pay. 
Therefore, if Sam's consumer surplus is $75, he must have been willing to pay the original price of $175 ($100 + $75) for the good.

Suppose Sam Buys a Good for $100 at a Yard