Question

*macroeconomicsIf your favorite coffee is only $3, but you would be willing topay $5, what are you getting each time you purchase that

coffee?

Answer 1

When you purchase your favorite coffee for $3, but you would be willing to pay $5, you are getting consumer surplus. Consumer surplus is the difference between the price a consumer is willing to pay for a good or service and the actual price they pay. In this case, your consumer surplus is $2.

Step-by-step explanation:

When you purchase your favorite coffee for $3, but you would be willing to pay $5, you are getting what is known as consumer surplus.

Consumer surplus is the difference between the price a consumer is willing to pay for a good or service and the actual price they pay.

In this case, your consumer surplus is $2, which is the difference between your willingness to pay ($5) and the actual price you pay ($3).