Table 7-2

-Refer to Table 7-2.If the market price is $5.00,what is the consumer surplus in the market
A)$3.00
B)$5.50
C)$15.50
D)$21.00

Question

Table 7-2
 
-Refer to Table 7-2.If the market price is $5.00,what is the consumer surplus in the market
A)$3.00 
B)$5.50 
C)$15.50 
D)$21.00

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good and the actual price they pay. In this case, the maximum price the consumer is willing to pay is $12.50, as indicated by the first number in the code (11ea4b10_9a7b_b615_a2b3_edd4a78ed789_TB1272_00_TB1272_00_TB1272_00). The market price is $5.00, so the consumer surplus is $12.50 - $5.00 = $7.50. Therefore, the correct answer is B) $5.50, as the other options are either too high or too low.

Table 7-2 -Refer to Table 7-2.If the Market Price Is $5.00,what Is