Andrew paid $30 to buy a potato cannon, a cylinder that shoots potatoes hundreds of feet. He was willing to pay $45. When Andrew's friend Javier learns that Andrew bought a potato cannon, he asks Andrew if he will sell it for $60, and Andrew agrees. Javier is thrilled, because he would have paid Andrew up to $80 for the cannon. Andrew is also delighted. What is Andrew's original consumer surplus? a. $15b. $20c. $30d. $50

Question

Alondra Blackburn

Business

22 February, 05:08

Andrew paid $30 to buy a potato cannon, a cylinder that shoots potatoes hundreds of feet. He was willing to pay $45. When Andrew's friend Javier learns that Andrew bought a potato cannon, he asks Andrew if he will sell it for $60, and Andrew agrees. Javier is thrilled, because he would have paid Andrew up to $80 for the cannon. Andrew is also delighted. What is Andrew's original consumer surplus? a. $15b. $20c. $30d. $50

+3

Answers (1)

Know the Answer?

Melissa Kline · Answer 1

The answer is: A) $15

Explanation:

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a product and the price of the product.

Andrew was willing to pay up to $45 for the potato cannon and its price was only $30, so the consumer surplus is $15.