Dave's Consumer Surplus on Movie Rentals per Week
(yes,we know no one rents movies anymore,but it makes a good example!)
TABLE 6-2
-Refer to Table 6-2.If Dave rents 3 movies in one week,his total consumer surplus is ________ and the total amount he pays is ________.

Question

Dave's Consumer Surplus on Movie Rentals per Week
(yes,we know no one rents movies anymore,but it makes a good example!)
  TABLE 6-2
-Refer to Table 6-2.If Dave rents 3 movies in one week,his total consumer surplus is ________ and the total amount he pays is ________.

Quizplus · Accepted Answer

To calculate Dave's consumer surplus, we need to find the difference between the maximum price that Dave is willing to pay for each movie and the actual rental price. 
For the first movie, Dave's maximum willingness to pay is $7.50, but he only pays $5.00, giving him a consumer surplus of $2.50. 
For the second movie, Dave's maximum willingness to pay is $5.00, and he pays exactly that amount, so he has a consumer surplus of $0.00 (no surplus). 
For the third movie, Dave's maximum willingness to pay is $5.00, but he only pays $2.00, so he has a consumer surplus of $3.00. 
Adding up these individual surpluses, we get a total consumer surplus of $2.50 + $0.00 + $3.00 = $5.50. 
The total amount Dave pays is simply the sum of the rental prices for each movie, which is $5.00 + $5.00 + $5.00 = $15.00. 
Therefore, the correct answer is C.

Dave's Consumer Surplus on Movie Rentals Per Week