Table 4-1

-Refer to Table 4-1.The table above lists the highest prices three consumers,Curly,Moe,and Larry,are willing to pay for a bottle of champagne.If the price of one of the bottles is $24 dollars
A)Curly will buy two bottles,Moe will buy one bottle and Larry will buy no bottles.
B)Curly will receive $26 of consumer surplus from buying one bottle.
C)Curly and Moe receive a total of $80 of consumer surplus from buying one bottle each.Larry will buy no bottles.
D)Larry will receive $15 of consumer surplus since he will buy no bottles.

Question

Table 4-1
 
-Refer to Table 4-1.The table above lists the highest prices three consumers,Curly,Moe,and Larry,are willing to pay for a bottle of champagne.If the price of one of the bottles is $24 dollars
A)Curly will buy two bottles,Moe will buy one bottle and Larry will buy no bottles. 
B)Curly will receive $26 of consumer surplus from buying one bottle. 
C)Curly and Moe receive a total of $80 of consumer surplus from buying one bottle each.Larry will buy no bottles. 
D)Larry will receive $15 of consumer surplus since he will buy no bottles.

Quizplus · Accepted Answer

Curly's willingness to pay is $50, so if he buys a bottle for $24, his consumer surplus is $50 - $24 = $26.

Table 4-1 -Refer to Table 4-1.The Table Above Lists the Highest Prices