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 $375 to $330, which of the following statements is true?
A) Javier will join the market but will receive no consumer surplus.
B) Javier and Kamal will join the market and together will receive $30 in consumer surplus.
C) Martina will experience a decrease in consumer surplus of $45.
D) Martina will experience an increase in consumer surplus of $45.
Correct Answer:
Verified
Q23: A market has four individuals, each considering
Q24: A market has four individuals, each considering
Q25: A market has four individuals, each considering
Q26: What consumer surplus is received by someone
Q27: Suppose Advik's willingness to pay for a
Q29: Q30: Surplus is: Q31: A market has four individuals, each considering Q32: Q33: 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
A) a measure of the value