Exhibit 7-1 Miles demands jazz CDs according to the following demand schedule:
Refer to Exhibit 7-1.If the price of the jazz CDs equals $15,the total consumer surplus Miles receives from purchasing jazz CDs is:

Question

Exhibit 7-1 Miles demands jazz CDs according to the following demand schedule:
 Refer to Exhibit 7-1.If the price of the jazz CDs equals $15,the total consumer surplus Miles receives from purchasing jazz CDs is:

Quizplus · Accepted Answer

At a price of $15, Miles would purchase 2 jazz CDs. The total amount Miles is willing to pay for these 2 CDs is $45 ($25 for the first CD and $20 for the second CD). However, Miles only has to pay $30 for both CDs, so his consumer surplus is $15 ($45 - $30). Therefore, the correct answer is C.

Exhibit 7-1 Miles Demands Jazz CDs According to the Following