Table-Demand and Utility Table for action figures $$\begin{array} { | c | c | c | c | }
\hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \
\hline \$ 14 & 1 & & \
\hline \$ 12 & 2 & & \
\hline \$ 10 & 3 & & \
\hline \$ 8 & 4 & & \
\hline \$ 6 & 5 & & \
\hline
\end{array}$$
-If the price of action figures was $8.00 each,his consumer surplus would be
A)$8.
B)$12.
C)$16.
D)$32.
E)$44.

Question

Table-Demand and Utility Table for action figures $$\begin{array} { | c | c | c | c | } 
\hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \
\hline \$ 14 & 1 & & \
\hline \$ 12 & 2 & & \
\hline \$ 10 & 3 & & \
\hline \$ 8 & 4 & & \
\hline \$ 6 & 5 & & \
\hline
\end{array}$$
-If the price of action figures was $8.00 each,his consumer surplus would be
A)$8.
B)$12.
C)$16.
D)$32.
E)$44.

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay and what they actually pay. At a price of $8, the consumer buys 4 action figures. The willingness to pay for these 4 figures can be calculated from the given prices for quantities 1 through 4, which are $14, $12, $10, and $8, respectively. The total amount the consumer is willing to pay is $14 + $12 + $10 + $8 = $44. The actual amount paid is 4 figures at $8 each, totaling $32. Therefore, the consumer surplus is $44 - $32 = $12.

Table-Demand and Utility Table for Action Figures -If the Price of Action Figures Was $8