Exhibit 5-3

Refer to Exhibit 5-3 which shows the demand and supply of a college athlete. Suppose that NCAA rules limit the amount that the college can pay this athlete, such that their payment can not exceed the cost of attending the college (currently, $8,000). What is the consumers' surplus for the college (with respect to this one athlete)?

Question

Exhibit 5-3

Refer to Exhibit 5-3 which shows the demand and supply of a college athlete.  Suppose that NCAA rules limit the amount that the college can pay this athlete, such that their payment can not exceed the cost of attending the college (currently, $8,000).  What is the consumers' surplus for the college (with respect to this one athlete)?

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The Answer of Exhibit 5-3

Refer to Exhibit 5-3 which shows the demand and supply of a college athlete.  Suppose that NCAA rules limit the amount that the college can pay this athlete, such that their payment can not exceed the cost of attending the college (currently, $8,000).  What is the consumers' surplus for the college (with respect to this one athlete)?

Exhibit 5-3 Refer to Exhibit 5-3 Which Shows the Demand and Supply