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Suppose the Market Price Is $5

Question 58

Multiple Choice

Suppose the market price is $5. The buyer who buys the first unit of output has a willingness-to-buy equal to $10; the buyer who buys the second unit of output has a willingness-to-buy equal to $9; and the buyer who buys the third unit of output has a willingness-to-buy equal to $8. Total consumer surplus is:


A) $27.
B) $10.
C) $5.
D) $12.

Correct Answer:

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