Table 7-6

-Refer to Table 7-6.You have an extra ticket to the Midwest Regional Sweet 16 game in the men's NCAA basketball tournament.The table shows the willingness to pay of the four potential buyers in the market for a ticket to the game.You hold an auction to sell the ticket.Michael bids $410 for the ticket,and you sell him the ticket.What is his consumer surplus?
A) $410
B) $90
C) $10
D) $0

Question

Table 7-6
 
-Refer to Table 7-6.You have an extra ticket to the Midwest Regional Sweet 16 game in the men's NCAA basketball tournament.The table shows the willingness to pay of the four potential buyers in the market for a ticket to the game.You hold an auction to sell the ticket.Michael bids $410 for the ticket,and you sell him the ticket.What is his consumer surplus?
A) $410 
B) $90 
C) $10 
D) $0

Quizplus · Accepted Answer

Michael's willingness to pay was $500, but he only had to pay $410, so his consumer surplus is $90 ($500 - $410).

Table 7-6 -Refer to Table 7-6.You Have an Extra Ticket to the Extra