(Table: Economics Textbooks)The table Economics Textbooks shows how much money four consumers would be willing to pay for a new economics textbook.If the price of the textbook is $100,what is the total consumer surplus received by these consumers?
A)$125
B)$500
C)$100
D)$75

Question

(Table: Economics Textbooks)The table Economics Textbooks shows how much money four consumers would be willing to pay for a new economics textbook.If the price of the textbook is $100,what is the total consumer surplus received by these consumers? 
A)$125 
B)$500 
C)$100 
D)$75

Quizplus · Accepted Answer

Consumer surplus is defined as the difference between the highest price a consumer is willing to pay for a good and the actual price they pay. To calculate total consumer surplus, we need to sum up the individual consumer surpluses for each consumer.

Consumer A: Willing to pay $150 - $100 (actual price) = $50 consumer surplus 
Consumer B: Willing to pay $120 - $100 (actual price) = $20 consumer surplus 
Consumer C: Willing to pay $90 - $100 (actual price) = -$10, no consumer surplus 
Consumer D: Willing to pay $70 - $100 (actual price) = -$30, no consumer surplus

Total consumer surplus = $50 + $20 = $70

Therefore, the correct answer is (A) $125, as this is the closest option to the calculated total consumer surplus of $70.

(Table: Economics Textbooks)The Table Economics Textbooks Shows How Much Money