Watch this video, which explains consumer surplus using a graph to help
you grasp the concept and the calculation. Complete the practice
questions to make sure you understand the calculation.
Practice Questions
You are willing to pay $200 for a daylong admission ticket to a theme park. The cost of the ticket is $120. Your consumer surplus is: *
$0
$80
$120
$320
A limited edition package is sold only to 200 customers for $130 each. The average value of the package for the 200 customers is $280. What is the total consumer surplus? *
$150
$15,000
$30,000
$150,000
What should we expect to happen if the consumer surplus of a trade is negative? *
The consumer gains no value from the trade.
The consumer loses value from the trade.
The consumer's gain from trade is the absolute value of the consumer surplus.
