Use the following to answer question:
-(Table: Consumer Surplus)Use Table: Consumer Surplus.Assume that each student wants to buy one ticket.If the price of a ticket to see The Nutty Nutcracker is $50 and there is no other market for tickets,total consumer surplus for the five students is:
A)$105.
B)$130.
C)$270.
D)$320.

Question

Use the following to answer question: 
-(Table: Consumer Surplus)Use Table: Consumer Surplus.Assume that each student wants to buy one ticket.If the price of a ticket to see The Nutty Nutcracker is $50 and there is no other market for tickets,total consumer surplus for the five students is:
A)$105. 
B)$130. 
C)$270. 
D)$320.

Quizplus · Accepted Answer

To calculate consumer surplus, we need to find the difference between the maximum amount each consumer is willing to pay and the price they actually pay. From the table, we can see that the maximum amount each student is willing to pay ranges from $70 to $100. If the price is $50, then each student will have a consumer surplus ranging from $20 to $50. Adding up the consumer surplus for all five students, we get $20 + $30 + $40 + $50 + $15 = $105. Therefore, the correct answer is A) $105.

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