Answer:
Consumer Surplus = $1.50
Explanation:
Consumer surplus is the difference between what a consumer is willing to pay for a given amount of goods or services and what he ends up paying.
Therefore,
Consumer surplus = Amount consumer is willing to pay less amount paid
Given that
Elvis is willing to pay 5 + 4 + 4.50 = 13.50 for three
Price of 3 sandwich = 3 × 4 = 12
Consumer surplus = 13.50 - 12
= $1.50
