Figure 4-1

Figure 4-1 shows Arnold's demand curve for burritos.
-Refer to Figure 4-1.If the market price is $2.00, what is the consumer surplus on the first burrito?
A)$0.50
B)$1.00
C)$2.00
D)$7.50

Question

Figure 4-1
  
Figure 4-1 shows Arnold's demand curve for burritos.
-Refer to Figure 4-1.If the market price is $2.00, what is the consumer surplus on the first burrito?
A)$0.50 
B)$1.00 
C)$2.00 
D)$7.50

Quizplus · Accepted Answer

Consumer surplus is the difference between the price a consumer is willing to pay for a good and the price they actually pay. In this case, the consumer is willing to pay $2.50 for the first burrito, but they only have to pay $2.00. Therefore, the consumer surplus is $0.50.

Figure 4-1 Figure 4-1 Shows Arnold's Demand Curve for Burritos