A consumer is considering purchasing their favorite coffee at $4 per cup. They value the coffee at $6 per cup. If they are willing to buy 3 cups at this price, but then the price rises to $5 per cup, what should they consider regarding their consumer surplus and the optimal quantity to purchase?

Consumer surplus is the difference between what a consumer is willing to pay for a good and what they actually pay. In this case, the consumer values the coffee at $6 but can buy it for $4, giving them a surplus of $2 for each cup. If they want to buy three cups, their total surplus would be $6. However, if the price rises to $5 per cup, their surplus per cup decreases to $1, making the total surplus for three cups only $3. The consumer should consider if the benefit of drinking three cups at the higher price is worth the lower surplus, and they might decide to buy fewer cups to maximize their overall satisfaction.