Table 7-1
This table refers to five possible buyers' willingness to pay for good Z. $\begin{array}{|c|c|}
\hline \text { Buyer } & \text { Willingness to pay ( } \$ \text { ) } \
\hline \text { Cassie } & 15.00 \
\hline \text { Jamie } & 11.00 \
\hline \text { John } & 9.50 \
\hline \text { Jeremy } & 6.00 \
\hline \text { Sarah } & 4.50 \
\hline
\end{array}$
-Refer to Table 7-1.If the market price is $6.00, the consumer surplus in the market will be:
A)$1.50
B)$17.50
C)$6.00
D)$0

Question

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 maximum price that consumers are willing to pay range from $15 to $6. If the market price is $6, then all consumers who are willing to pay $6 or more will purchase the good, resulting in a consumer surplus of $17.50 (($15-$6) + ($10-$6) + ($8-$6) + ($7-$6) + ($6-$6) = $17.50).

Table 7-1 This Table Refers to Five Possible Buyers' Willingness

Table 7-1
This Table Refers to Five Possible Buyers' Willingness