Exhibit 7-4 The schedule below shows the prices that a consumer is willing to pay for pounds of shrimp:
Refer to Exhibit 7-4.If the price of shrimp were to decrease from $12 to $10,the increase in consumer surplus would equal:

Question

Exhibit 7-4 The schedule below shows the prices that a consumer is willing to pay for pounds of shrimp:
 Refer to Exhibit 7-4.If the price of shrimp were to decrease from $12 to $10,the increase in consumer surplus would equal:

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good and the price they actually pay. In this case, the consumer is willing to pay $12 for one pound of shrimp, but the price is actually $10. Therefore, the consumer surplus is $2 ($12 - $10). If the price were to decrease to $10, the consumer would be willing to buy more shrimp, resulting in an increase in consumer surplus. The new consumer surplus would be $8 ($12 - $10) for the first pound of shrimp and $6 ($11 - $10) for the second pound, for a total increase of $6. Therefore, the increase in consumer surplus would be $6 if the price of shrimp were to decrease from $12 to $10.

Exhibit 7-4 the Schedule Below Shows the Prices That a Consumer