Suppose the price of a liter of soda is $2. If Sara is willing to pay...

Question

Question

Suppose the price of a liter of soda is $2. If Sara is willing to pay $3 for that liter of soda, her consumer surplus is: O A

Answer 1

Answer #1

Option B.

Consumer surplus can be defined as the maximum price a consumer is able and willing to pay against the actual price set by the market.

It can be calculated as the difference between the maximum price a consumer is willing to pay and the actual market price of that
product.

Here it is given that sara is willing to pay $3 for that liter of soda while its actual market price is $2 per liter.

Thus her consumer surplus is $3 - $2 = $1//

Answer 2

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