Table 7-1
For each of three potential buyers of apples,the table displays the willingness to pay for the first three apples of the day.Assume Xavier,Yadier,and Zavi are the only three buyers of apples,and only three apples can be supplied per day.

-Refer to Table 7-1.If the market price of an apple is $1.40,then consumer surplus amounts to
A) $0.60.
B) $1.20.
C) $1.40.
D) $3.40

Question

Table 7-1
For each of three potential buyers of apples,the table displays the willingness to pay for the first three apples of the day.Assume Xavier,Yadier,and Zavi are the only three buyers of apples,and only three apples can be supplied per day.
 
-Refer to Table 7-1.If the market price of an apple is $1.40,then consumer surplus amounts to
A) $0.60. 
B) $1.20. 
C) $1.40. 
D) $3.40

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay and what they actually pay. If the market price is $1.40 and the willingness to pay is higher, the surplus is the difference, which is $0.60.

Table 7-1 For Each of Three Potential Buyers of Apples,the Table Displays