Table 5.2
-Refer to Table 5.2.The table above lists the highest prices five consumers are willing to pay for a theatre ticket.If the price of one ticket rises from $10 to $19,

Question

Table 5.2 
-Refer to Table 5.2.The table above lists the highest prices five consumers are willing to pay for a theatre ticket.If the price of one ticket rises from $10 to $19,

Quizplus · Accepted Answer

If the price of one ticket rises from $10 to $19, only three tickets will be sold as shown in the table. Consumer surplus will decrease from $31 to $6 because the consumers who were willing to pay between $10 and $14 will no longer be able to afford the ticket due to the price increase. Therefore, option B is the correct answer. Option C cannot be true since the consumer surplus cannot increase with a price increase. Option D is also not possible because there are still consumers willing to pay up to $30 for a ticket, even though the majority may not be able to afford the new price of $19.

Table 5.2 -Refer to Table 5.2.The Table Above Lists the Highest Prices