TABLE 6-1
Henry demands jazz CDs according to the following demand schedule:

-Refer to Table 6-1. If the price of jazz CDs equals $15, what is the consumer surplus Henry receives from purchasing jazz CDs?
A) $15
B) $25
C) $30
D) $55

Question

TABLE 6-1
Henry demands jazz CDs according to the following demand schedule:
 
-Refer to Table 6-1. If the price of jazz CDs equals $15, what is the consumer surplus Henry receives from purchasing jazz CDs?
A) $15 
B) $25 
C) $30 
D) $55

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay for a good and what the consumer actually pays. Without the specific details from Table 6-1, we typically calculate consumer surplus by looking at the area above the price level and below the demand curve up to the quantity purchased. Assuming Henry's maximum willingness to pay for the first CD is higher than $15 and decreases for subsequent CDs, and he buys CDs up to the point where his willingness to pay equals $15, the total consumer surplus would be the sum of the differences between his willingness to pay for each CD and the $15 he actually pays. Without the table, we can't calculate the exact figures, but the correct answer is provided as C, $30, based on the information given.

TABLE 6-1 Henry Demands Jazz CDs According to the Following Demand Schedule