In the following figure, the total willingness to pay for the 10^th unit of the good is _______.

Question

Quizplus · Accepted Answer

The total area of the triangle formed by the demand curve and the price axis represents the total willingness to pay for the good. The area of this triangle is calculated as (base x height)/2, which gives us (8 x 20)/2 = $80 for the first segment of the demand curve, and (10 x 8)/2 = $40 for the second segment. Adding these two values together, we get a total willingness to pay of $120 for the first 8 units. For the remaining 2 units, the willingness to pay is $20 per unit, giving us a total of $40. Therefore, the total willingness to pay for the 10^th unit of the good is $160.

In the Following Figure, the Total Willingness to Pay for the 10th

In the Following Figure, the Total Willingness to Pay for the 10^th