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Marginal Analysis
easy

If a consumer is willing to pay $100 for a concert ticket but purchases it for $70, what is the consumer surplus they experience from this transaction?

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Choose the Best Answer

A

$30

B

$100

C

$70

D

$50

Understanding the Answer

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Answer

Consumer surplus is the extra benefit a buyer gets when the price they pay is lower than what they were willing to pay. In this case, the buyer was ready to spend $100 on the ticket but only paid $70. The difference, $30, is the surplus. So the consumer enjoys a $30 benefit from this purchase.

Detailed Explanation

Consumer surplus is the extra value a buyer gets beyond what they pay. Other options are incorrect because Some think the surplus is the amount the buyer likes; The price paid is not the surplus.

Key Concepts

Consumer Surplus
Topic

Marginal Analysis

Difficulty

easy level question

Cognitive Level

understand

Practice Similar Questions

Test your understanding with related questions

1
Question 1

If a student decides to buy a textbook for $50 instead of going to a concert that costs $40, what is the opportunity cost of purchasing the textbook?

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