Question

Nicki paid $900 for a camera that she thought was worth $1100 for all the features included in it. for the consumer electronics firm selling the camera, however, the cost of producing the camera was only $350. what is the consumer surplus in this scenario?

Answer 1

Consumer surplus is difference between the amount that consumers are willing and able to pay for a good or service

In this case, Nicki is willing to pay $1,100 for the camera, but she is only asked to pay 900. So Nicki has a consumer surplus of $200