Quiz for:
Understanding Consumer Surplus

Question 1

For the first unit of water with WTP of $6 and a price of $3, what is the Consumer Surplus?

Question 2

Which of the following factors is necessary for calculating Consumer Surplus?

Question 3

What does the total Consumer Surplus represent in a given market?

Question 4

How is Consumer Surplus generally calculated from a demand curve?

Question 5

What is indicated if a consumer's WTP is higher than the actual price paid?

Question 6

How is 'Willingness to Pay' (WTP) defined?

Question 7

What is the implication of a higher Consumer Surplus for consumers?

Question 8

In the single unit example with an Apple, if the WTP is $2 and the actual price paid is $1, what is the Consumer Surplus?

Question 9

What is the total Consumer Surplus for buying 3 bottles of water with WTPs of $6, $5, and $4, and each priced at $3?

Question 10

What is the definition of Consumer Surplus?

Question 11

Using the example where the base is 10 and the height is 10, what would the Consumer Surplus be if calculated as the area of a triangle?

Question 12

In the concept of Consumer Surplus, what does 'Actual Price Paid' refer to?

Question 13

In the demand curve example, if the price is $20 and the quantity demanded is 10, what is the Consumer Surplus for the 5th unit with a WTP of $25?

Question 14

When evaluating from the demand curve, what represents the highest WTP for each quantity?

Question 15

How is Consumer Surplus calculated?