Charlie is willing to pay $12 for a T-shirt that is priced at $10. If Charlie buys the T-shirt, then his consumer surplus is

A) $2.
B) $12.
C) $22.
D) more than $10.
E) $120.

Question

Charlie is willing to pay $12 for a T-shirt that is priced at $10. If Charlie buys the T-shirt, then his consumer surplus isA) $2.B) $12.C) $22.D) more than $10.E) $120.

aayushi Patel · Accepted Answer

Final Answer : A, Explanation :  Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay. Charlie is willing to pay $12 but pays $10, so his consumer surplus is $12 - $10 = $2.

Charlie is willing to pay $12 for a T-shirt that is priced at $10. If Charlie buys the T-shirt, then his consumer surplus is

A) $2.
B) $12.
C) $22.
D) more than $10.
E) $120.

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