Table 7-4
The numbers in Table 7-1 reveal the maximum willingness to pay for a ticket to a Chicago Cubs vs. St. Louis Cardinal's baseball game at Wrigley Field.

-Refer to Table 7-4. If tickets sell for $40 each, then what is the total consumer surplus in the market?
A) $30.
B) $90.
C) $70.
D) $110.

Question

Table 7-4
The numbers in Table 7-1 reveal the maximum willingness to pay for a ticket to a Chicago Cubs vs. St. Louis Cardinal's baseball game at Wrigley Field.
 
-Refer to Table 7-4. If tickets sell for $40 each, then what is the total consumer surplus in the market?
A) $30. 
B) $90. 
C) $70. 
D) $110.

Quizplus · Accepted Answer

To find the consumer surplus, we need to calculate the area under the demand curve but above the price line. At a price of $40, the quantity demanded is 6, so the total consumer surplus is:
(1/2) x (8-6) x $40 + (1/2) x (10-8) x $40 = $80 + $10 = $90.

Table 7-4 the Numbers in Table 7-1 Reveal the Maximum Willingness to Willingness