Consumer surplus

Which best describes consumer surplus?

• The price consumers are willing to pay

• The cost of providing a unit

• The profit made by a firm

• Non is correct

Hassan is willing to pay $20 to see the Conjuring movie for the 4th time. He finds a theater showing the movie for $5. Hassan's consumer surplus is

• $5

• $15

• $20

• $25

If you pay a price exactly equal to your willingness to pay, then

• your consumer surplus is $0

• your willingness to pay is less than your consumer surplus

• your consumer surplus is negative

• you place little value on the good

When the price is P_1, consumer surplus is

• A

• A + B

• A + B + C

• A + B + D

When the price rises from P₁ to P₂, consumer surplus

• Increases by an amount equal to A

• Decreases by an amount equal to B + C

• Increases by an amount equal to B + C

• Decreases by an amount equal to C