Cameron visits a sporting goods store to buy a new set of golf clubs. He is willing to pay $750 for the clubs but buys them on sale for $525. Cameron's consumer surplus from the purchase is:
A) $225
B) $525
C) $750
D) $1275

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay for a product and what they actually pay. Therefore, Cameron's consumer surplus is the difference between what he was willing to pay ($750) and what he actually paid ($525), which is $225.

Cameron Visits a Sporting Goods Store to Buy a New