A market has four individuals, each considering buying a grill. Assume that grills come in only one size and model. Martina considers herself a grill-master, and finds a grill a necessity, so she is willing to pay $400 for a grill. Javier is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Kamal wants to impress his friends with his vegetable grilling skills and is willing to pay $320 for a grill. Lina loves grilled shrimp and thinks it might be cheaper in the long run if she grills her own shrimp instead of eating out at a restaurant, so she is willing to pay $200 for a grill.If the market price of grills falls from $395 to $340, which of the following statements is true?
A) Martina's consumer surplus increases from $5 to $60, and total consumer surplus increases from $5 to $70.
B) Martina's consumer surplus decreases from $60 to $5, and total consumer surplus decreases from $70 to $5.
C) Kamal's consumer surplus increases from $0 to $20, and total consumer surplus increases from $5 to $70.
D) Javier's consumer surplus decreases from $10 to $0, and total consumer surplus increases from $10 to $80.
Correct Answer:
Verified
Q20: A seller's willingness to sell:
A) must always
Q21: Q22: Q23: A market has four individuals, each considering Q24: A market has four individuals, each considering Q26: What consumer surplus is received by someone Q27: Suppose Advik's willingness to pay for a Q28: A market has four individuals, each considering Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents