Use the figure below to answer the following questions.

Figure 5.2.1
-Consider Figure 5.2.1. When the price is $4, what is the consumer surplus from the second unit of the good?
A)$7
B)$3
C)$4
D)$1
E)$10

Question

Use the figure below to answer the following questions.
  
Figure 5.2.1
-Consider Figure 5.2.1. When the price is $4, what is the consumer surplus from the second unit of the good?
A)$7 
B)$3 
C)$4 
D)$1 
E)$10

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay and what they actually pay. If the price is $4 and the consumer is willing to pay $7 for the second unit, the consumer surplus is $7 - $4 = $3.

Use the Figure Below to Answer the Following Questions