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.Which of the following is NOT true?
A)the table is the demand schedule for good Z
B)the demand schedule represented by the table shows the willingness to pay of the marginal buyer
C)at a price of $8.00, total consumer surplus in the market will be $11.50
D)when the price is $5.50, each person will have a positive consumer surplus

Question

Quizplus · Accepted Answer

The statement in D is not true because at a price of $5.50, the person willing to pay exactly $5.50 for good Z would have a consumer surplus of $0, not a positive consumer surplus. Consumer surplus is the difference between what consumers are willing to pay and what they actually pay. If someone is willing to pay exactly the price, their surplus is zero.

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

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