Use the following to answer the question :
Table: Excel Company Survey $$\begin{array} { l c }
\hline \text { Consumer } & \begin{array} { c }
\text { Maximum willingness to pay } \
\text { for Excel personal computers (\$) }
\end{array} \
\hline \text { Adam } & 1,459 \
\text { Sheera } & 1,320 \
\text { Orko } & 1,201 \
\text { Juliet } & 1,165 \
\hline
\end{array}$$
-(Table: Excel Company Survey) The table shows the results of Excel Company's market survey. If the market price of Excel computers is $1,200 each, how much total consumer surplus (in $) are the four consumers earning?

Question

Use the following to answer the question :
Table: Excel Company Survey $$\begin{array} { l c } 
\hline \text { Consumer } & \begin{array} { c } 
\text { Maximum willingness to pay } \
\text { for Excel personal computers (\$) }
\end{array} \
\hline \text { Adam } & 1,459 \
\text { Sheera } & 1,320 \
\text { Orko } & 1,201 \
\text { Juliet } & 1,165 \
\hline
\end{array}$$
-(Table: Excel Company Survey) The table shows the results of Excel Company's market survey. If the market price of Excel computers is $1,200 each, how much total consumer surplus (in $) are the four consumers earning?

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good and the actual price they pay. In this case, the market price of Excel computers is $1,200 each. Adam's maximum willingness to pay is $1,459, so his consumer surplus is $1,459 - $1,200 = $259. Similarly, Sheera's consumer surplus is $1,320 - $1,200 = $120, Orko's consumer surplus is $1,201 - $1,200 = $1, and Juliet's consumer surplus is $1,165 - $1,200 = -$35. The total consumer surplus for the four consumers is $259 + $120 + $1 + -$35 = $380.

Use the Following to Answer the Question : Table: Excel

Use the Following to Answer the Question :
Table: Excel