Scenario 12-1
Max and Mark enjoy beer. Max places a $23 value on a bottle of beer, and Mark places a $18 value on it. The equilibrium price for a bottle of beer is $14.
-Refer to Scenario 12-1. How much total consumer surplus do Max and Mark get when each purchases a bottle of beer?
A)$14
B)$9
C)$4
D)$13

Question

Quizplus · Accepted Answer

Max's consumer surplus is $23 - $14 = $9, and Mark's consumer surplus is $18 - $14 = $4. Adding these together gives a total consumer surplus of $9 + $4 = $13.

Scenario 12-1 Max and Mark Enjoy Beer. Max Places a $23 Value