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Eliza Is Willing to Pay $10 for Her First Ticket

Question 116

Essay

Eliza is willing to pay $10 for her first ticket to the movies, $8 for her second ticket, and $6 for her third. If the price of a ticket is $9, how many tickets will Eliza purchase, and how much consumer surplus will she enjoy? If the price falls to $7, how do your answers change?

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At the initial price of $9, Eliza buys o...

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