There are 100 consumers, each of whom values a concert ticket at a unique whole number dollar amount between $1 and $100. One customer is willing to pay $1, a second is willing to pay $2, a third is willing to pay $3, and so on. An unlimited number of concert tickets are on sale for $15 each. What is the total consumer surplus in this market?

Question

Quizplus · Accepted Answer

The total consumer surplus is the sum of the difference between the price of the ticket and the amount each consumer is willing to pay for it. In this case, the price of the ticket is $15, and the amount each consumer is willing to pay for it ranges from $1 to $100. The total consumer surplus is therefore:(1 + 2 + 3 + ... + 100) - (15 * 100) = 5050 - 1500 = $3550

There Are 100 Consumers, Each of Whom Values a Concert