Table 12-3

-Refer to Table 12-3.Assume that the price of a weekend ski pass is $38 and that the price reflects the actual unit cost of providing a weekend of skiing.How much consumer surplus accrues to Allyn and Greg individually?
A)$85 and $65 respectively
B)$49 and $35 respectively
C)$47 and $27 respectively
D)$37 and $17 respectively

Question

Table 12-3
 
-Refer to Table 12-3.Assume that the price of a weekend ski pass is $38 and that the price reflects the actual unit cost of providing a weekend of skiing.How much consumer surplus accrues to Allyn and Greg individually?
A)$85 and $65 respectively 
B)$49 and $35 respectively 
C)$47 and $27 respectively 
D)$37 and $17 respectively

Quizplus · Accepted Answer

Consumer surplus is calculated as the difference between what consumers are willing to pay and what they actually pay. If Allyn and Greg's willingness to pay is higher than $38, the surplus is the difference between their willingness to pay and $38.

Table 12-3 -Refer to Table 12-3.Assume That the Price of a Weekend