Question

Belva is willing to pay $65.00 for a pair of shoes for a formal dance. She finds a pair at her favorite outlet shoe store for $48.00. Belva's consumer surplus is $17.

a) True
b) False

Answer 1

Belva's consumer surplus is indeed $17, which is the difference between her willingness to pay ($65) and the price she paid for the shoes ($48). Option number a is correct.

Step-by-step explanation:

The question concerns the concept of consumer surplus, which in economics is the difference between the amount a consumer is willing to pay for a good or service and the actual price they pay. Belva is willing to pay $65.00 for a pair of shoes, but she finds them for $48.00. The consumer surplus here would be the difference between the two amounts, which is $17.00 ($65.00 - $48.00).

Thus, the statement that Belva's consumer surplus is $17 is true.