Determine the amount of consumer surplus generated in each of the following situations.
a.Mary goes to the drugstore,where she is willing to pay up to $10 for a bottle of nail polish.She picks out one that she likes with a price of $9.99.When she is paying for it,she learns that the product has been discounted by 50 percent.
b.Mike goes to the used book store hoping to find a paperback copy of the Hunger Games for up to $10.The store has one copy selling for $10,which he purchases.
c.After dance rehearsal,Julie is willing to pay $2 for a bottle of mineral water.The corner store sells mineral water for $2.25 per bottle,so she declines to purchase it.

Question

Quizplus · Accepted Answer

The Answer of Determine the amount of consumer surplus generated in each of the following situations.
a.Mary goes to the drugstore,where she is willing to pay up to $10 for a bottle of nail polish.She picks out one that she likes with a price of $9.99.When she is paying for it,she learns that the product has been discounted by 50 percent.
b.Mike goes to the used book store hoping to find a paperback copy of the Hunger Games for up to $10.The store has one copy selling for $10,which he purchases.
c.After dance rehearsal,Julie is willing to pay $2 for a bottle of mineral water.The corner store sells mineral water for $2.25 per bottle,so she declines to purchase it.

Determine the Amount of Consumer Surplus Generated in Each of the Following