Table 3-1

Refer to Table 3-1. If the table represents the willingness to pay of four buyers and the price of the product is $30, then their total consumer surplus is
A) $ − 10.
B) $ − 6.
C) $20.
D) $30.

Question

Table 3-1

Refer to Table 3-1. If the table represents the willingness to pay of four buyers and the price of the product is $30, then their total consumer surplus is
A) $ − 10. 
B) $ − 6. 
C) $20. 
D) $30.

Quizplus · Accepted Answer

Consumer surplus is the difference between the price that a consumer is willing to pay for a product and the actual price that they pay. In this case, the four buyers have a total willingness to pay of $60 ($20 + $30 + $5 + $5). Since the price of the product is $30, their total consumer surplus is $30 ($60 - $30). So, the correct answer is C) $20.

Table 3-1 Refer to Table 3-1. If the Table Represents the Willingness