The price of a drink at the juice bar is $7.Melody Miller buys six carrot juices over the course of the afternoon.

A) She is enjoying a consumer surplus.
B) She is not enjoying a consumer surplus.
C) There is no way to determine whether or not she is enjoying a consumer surplus.

Question

Dylan Cornell · Accepted Answer

Final Answer : A, Explanation :  Melody Miller is enjoying a consumer surplus because the actual price of the carrot juice is $7, but she is willing to pay more than $7 for each juice, as she continues to buy them throughout the afternoon. The difference between the actual price and the maximum price she is willing to pay is the consumer surplus.

The price of a drink at the juice bar is $7.Melody Miller buys six carrot juices over the course of the afternoon.

A) She is enjoying a consumer surplus.
B) She is not enjoying a consumer surplus.
C) There is no way to determine whether or not she is enjoying a consumer surplus.

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Learning Objectives

Related questions

The price of a drink at the juice bar is $7.Melody Miller buys six carrot juices over the course of the afternoon.A) She is enjoying a consumer surplus.B) She is not enjoying a consumer surplus.C) There is no way to determine whether or not she is enjoying a consumer surplus.

Definitions

Learning Objectives

Learning Objectives

Related questions

The price of a drink at the juice bar is $7.Melody Miller buys six carrot juices over the course of the afternoon.

A) She is enjoying a consumer surplus.
B) She is not enjoying a consumer surplus.
C) There is no way to determine whether or not she is enjoying a consumer surplus.