Table 4-2

-Refer to Table 4-2.The table above lists the highest prices five consumers are willing to pay for a theater ticket.If the price of one ticket rises from $10 to $19,

Question

Table 4-2
 
-Refer to Table 4-2.The table above lists the highest prices five consumers are willing to pay for a theater ticket.If the price of one ticket rises from $10 to $19,

Quizplus · Accepted Answer

If the price of one ticket rises from $10 to $19, only three tickets will be sold. Consumer surplus will decrease from $31 to $6. This is because when the price increases, the consumer surplus (the difference between the highest price a consumer is willing to pay and the actual price they pay) reduces for each consumer who purchased the ticket. Only three consumers will purchase the ticket at the increased price, and their consumer surplus will decrease from their initial willingness to pay to $6.

Table 4-2 -Refer to Table 4-2.The Table Above Lists the Highest Prices