Figure 6.2

-Refer to Figure 6.2.If the price of a DVD rental is $4.00,consumer surplus will be $________ each week.

Question

Figure 6.2
 
-Refer to Figure 6.2.If the price of a DVD rental is $4.00,consumer surplus will be $________ each week.

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a product/service and the actual price they pay. In this case, the demand curve intersects the price line at a quantity of 3, which means that consumers are willing to pay up to $9.00 for three DVD rentals ($3.00 per rental). However, the price is only $4.00 per rental, so the consumer surplus is $5.00 per rental or $15.00 for three rentals each week. Therefore, the answer is $6.00 (the consumer surplus for one rental per week).

Figure 6.2 -Refer to Figure 6.2.If the Price of a DVD Rental