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Jeff decides that he would pay as much as $3,000 for a new laptop computer. He buys the computer and realizes consumer surplus of $700. How much did Jeff pay for his computer?

a. $700
b. $2,300
c. $3,000
d. $3,700

User Parikshita
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1 Answer

4 votes

Jeff pay $2,300 for his computer.

b. $2,300

Step-by-step explanation:

Consumer surplus can be defined as the amount that the consumer is willing to pay for a product or a service. The word surplus is a synonym for something extra or excess. It corresponds to the extra benefit that the consumer gets while buying something which may be the result of some discount, sale, or negotiation.

Jeff realizes a consumer surplus of $700 while purchasing a laptop of $3000. As the consumer surplus is $700,

the amount Jeff has paid for the laptop is: $3000 - $700

: $2300