This table refers to five possible buyers' willingness to pay for a take-away meal.
$\begin{array}{l}
\text { Buyer Willingness To }\
\begin{array} { l l }
& \text { Pay } \
\text { David } & \text { R85.00 } \
\text { Laura } & \text { R70.00 } \
\text { Megan } & \text { R55.00 } \
\text { Mallory } & \text { R40.00 } \
\text { Audrey } & \text { R35.00 }
\end{array}
\end{array}$
-Refer to the table above. If the market price is R55.00, the consumer surplus in the market will be

Question

This table refers to five possible buyers' willingness to pay for a take-away meal.
$\begin{array}{l}
\text { Buyer Willingness To }\
\begin{array} { l l } 
& \text { Pay } \
\text { David } & \text { R85.00 } \
\text { Laura } & \text { R70.00 } \
\text { Megan } & \text { R55.00 } \
\text { Mallory } & \text { R40.00 } \
\text { Audrey } & \text { R35.00 }
\end{array}
\end{array}$
-Refer to the table above. If the market price is R55.00, the consumer surplus in the market will be

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay for a product. 
In this case, if the market price is R55.00, the consumer surplus for each buyer will be: 
- David: R30.00 (willingness to pay minus market price = R85.00 - R55.00 = R30.00) 
- Laura: R15.00 (willingness to pay minus market price = R70.00 - R55.00 = R15.00) 
- Megan: R0.00 (willingness to pay is equal to market price) 
- Mallory: R0.00 (willingness to pay is less than market price) 
- Audrey: R0.00 (willingness to pay is less than market price) 
So, the total consumer surplus in the market will be R30.00 + R15.00 + R0.00 + R0.00 + R0.00 = R45.00. Therefore, the best choice is B.

This Table Refers to Five Possible Buyers' Willingness to Pay