Top Posters
Since Sunday
12
s
6
j
5
5
s
5
m
5
f
5
b
4
p
4
m
4
M
4
i
4
New Topic  
rafiki121 rafiki121
wrote...
Posts: 57
Rep: 0 0
2 weeks ago
Consumer Surplus and Pricing

The table shows the willingness to pay for five consumers in the market for dog collars.
ConsumerHighest Price Willing to Pay
Antwone21
Nevaeh16
Valentina11
Matias6
Rudra1
What is the consumer surplus when the price is $16? When the price is $5.5?

▸ $5.00, $32.00

▸ $5.00, $30.00

▸ $18.50, $30.00

▸ $18.50, $32.00
Textbook 

Macroeconomics


Edition: 3rd
Authors:
Read 9 times
1 Reply
Replies
Answer verified by a subject expert
omolola69omolola69
wrote...
Posts: 44
Rep: 0 0
2 weeks ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
$5.00, $32.00

Consumer surplus is the difference between the highest price a consumer is willing to pay for a good and the actual price the consumer pays.

At $16, only Antwone and Nevaeh purchase dog collars, so:
Consumer surplus = (Antwone - 16) + (Nevaeh - 16) = (21 - 16) + (16 - 16) = $5.00

At $5.5, Antwone, Nevaeh, and Valentina purchase dog collars, so:
Consumer surplus = (Antwone - 5.5) + (Nevaeh - 5.5) + (Valentina - 5.5) = (21 - 5.5) + (16 - 5.5) + (11 - 5.5) = $32.00
1

Related Topics

rafiki121 Author
wrote...

2 weeks ago
Thank you, thank you, thank you!
wrote...

Yesterday
Thanks
wrote...

2 hours ago
Smart ... Thanks!
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  89 People Browsing
 464 Signed Up Today
Related Images
  
 880
  
 218
  
 83
Your Opinion
How often do you eat-out per week?
Votes: 62