Question

(Problem 1b.) Determine the amount of consumer surplus generated in the following situation. Alberto goes to the CD store hoping to find a used copy of Nirvana's Nevermind for up to $30. The store has one copy selling for $30, which he purchases. The amount of Alberto's consumer surplus is _____.

Answer 1

No consumer surplus

Step-by-step explanation:

Consumer surplus is the difference between the price a consumer pays for a good or service and the price the consumer was willing or budgeted for that same good or service. and from the question given the actual cost of the good is the same as the budgeted cost by the consumer

hence the consumer surplus will be calculated as = budgeted cost - actual cost

$30 - $30 = $0 therefore no consumer surplus is recorded in this transaction.

Answer 2

$0 is Alberto's consumer surplus.

Step-by-step explanation:

Consumer surplus= Price of used copy- selling price=30-30=$0