Table 4-5

-Refer to Table 4-5. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one ticket rises from $20 to $38,
A) only three tickets will be sold.
B) consumer surplus decreases from $62 to $12.
C) consumer surplus increases from $88 to $142.
D) no one will buy a ticket.

Question

Table 4-5
 
-Refer to Table 4-5. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one ticket rises from $20 to $38,
A) only three tickets will be sold. 
B) consumer surplus decreases from $62 to $12. 
C) consumer surplus increases from $88 to $142. 
D) no one will buy a ticket.

Quizplus · Accepted Answer

Consumer surplus decreases because fewer consumers are willing to pay the higher price, reducing the total surplus from the difference between what they are willing to pay and the actual price.

Table 4-5 -Refer to Table 4-5. the Table Above Lists the Highest