Table 7-3
The only four consumers in a market have the following willingness to pay for a good:

-Refer to Table 7-3.If the price is $30,then consumer surplus in the market is

Question

Table 7-3
The only four consumers in a market have the following willingness to pay for a good:
 
-Refer to Table 7-3.If the price is $30,then consumer surplus in the market is

Quizplus · Accepted Answer

Consumer surplus is the difference between the price consumers are willing to pay for a good and the price they actually pay. In this case, the price is $30, and the consumers are willing to pay $50 (as indicated by the demand curve). Therefore, consumer surplus is $50 - $30 = $20. Wilbur and Ming-la are the only consumers who are willing to pay more than $30 for the good, so they are the ones who purchase it.

Table 7-3 The Only Four Consumers in a Market Have the Following