f Brock is willing to pay $800 for a new suit but is able to buy the suit for $450, his consumer surplus is: A. $450 B. $350 C. $1200 D. $800
Question
If Brock is willing to pay 450, his consumer surplus is:
A. 350
C. 800
Solution
Brock's consumer surplus is calculated as the difference between what he is willing to pay and what he actually pays.
Step 1: Identify the amount Brock is willing to pay. This is given as $800.
Step 2: Identify the amount Brock actually pays. This is given as $450.
Step 3: Subtract the amount Brock actually pays from the amount he is willing to pay.
So, 450 (actual payment) = $350.
Therefore, Brock's consumer surplus is 350.
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