Suppose Kelly pays $450 for a washing machine that they were willing to pay $600 for. What is their consumer surplus?0$150$450$600
Question
Suppose Kelly pays 600 for. What is their consumer surplus?0450$600
Solution
The consumer surplus is the difference between what Kelly was willing to pay and what she actually paid.
Step 1: Identify the amount Kelly was willing to pay. This is $600.
Step 2: Identify the amount Kelly actually paid. This is $450.
Step 3: Subtract the amount Kelly paid from the amount she was willing to pay.
450 = $150
So, Kelly's consumer surplus is $150.
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