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 falls from $25 to $10,

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 falls from $25 to $10,

Quizplus · Accepted Answer

If the price falls from $25 to $10, everyone in the table will be able to purchase a ticket. Consumer surplus is the difference between the price paid for a good or service and the maximum price a consumer is willing to pay. In this case, before the price decrease, the total consumer surplus was $24 ($4 + $7 + $6 + $3 + $4), but after the price decrease, the total consumer surplus will be $31 ($15 + $15 + $1). Therefore, consumer surplus increases from $0 to $31.

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