A market has four individuals considering buying a grill for his backyard.Further assume that grills come in only one size and model.Abe considers himself a grill-master,and finds a grill a necessity,so he is willing to pay $400 for a grill.Butch is a meat-lover,honing his grilling skills,and is willing to pay $350 for a grill.Collin just met the girl of his dreams,and she loves a good grilled steak,so in his effort to impress her he is willing to pay $320 for a grill.Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp,so he is willing to pay $200 for a grill.
If the market price of grills is $320,given the scenario described,Abe's consumer surplus would be:
A)$400.
B)$350.
C)$320.
D)$80.

Question

Quizplus · Accepted Answer

Abe's consumer surplus is the difference between what he is willing to pay ($400) and the market price ($320), which is $80.

A Market Has Four Individuals Considering Buying a Grill for His