Question

Marco goes to the pet store to buy a dozen Koi fish for his new Koi pond. He is willing to pay​ $200 for the dozen​ fish, but buys them for a total of​ $140. ​ Marco's consumer surplus from the purchase is

Answer 1

Answer:

$60

Step-by-step explanation:

Given:

He is willing to pay​ $200 for the dozen​ fish.

But buys them for a total of​ $140.

To find:

Marco's consumer surplus from the purchase = ?

Solution:

The formula for consumer surplus is an economic formula that is applied to measure the consumer gain by subtracting the actual price that the consumer has given from the maximum price the consumer is willing to pay

Consumer surplus = maximum price willing to pay - actual price

                               = $200 - $140

                               = $60

Therefore, Marco's consumer surplus from the purchase is $60.