-Refer to Figure above. Suppose the price of pizza is $9.75. Then consumer surplus is ______.
A) $3.75
B) $3.50
C) $29.25
D) $33.00

Question

-Refer to Figure above. Suppose the price of pizza is $9.75. Then consumer surplus is ______.
A) $3.75 
B) $3.50 
C) $29.25 
D) $33.00

Quizplus · Accepted Answer

Consumer surplus is the difference between the price consumers are willing to pay for a good and the price they actually pay. In this case, consumers are willing to pay $13.50 for a pizza, but they only have to pay $9.75. Therefore, consumer surplus is $13.50 - $9.75 = $3.75.

-Refer to Figure Above