Use the following to answer question 24: $$\begin{array}{l}
\text { Table: Music Downloads }\
\begin{array} { l c c }
\hline \begin{array} { l }
\text { Number } \
\text { of Music } \
\text { Downloads }
\end{array} & \begin{array} { c }
\text { Eli's } \
\text { Willingness } \
\text { to Pay }
\end{array} & \begin{array} { c }
\text { Madison's } \
\text { Willingness } \
\text { to Pay }
\end{array} \
\hline \text { 1st song } & \$ 4.50 & \$ 3.00 \
\text { 2nd song } & 3.50 & 2.00 \
\text { 3rd song } & 2.50 & 1.00 \
\text { 4th song } & 1.50 & 0.50 \
\text { 5th song } & 0.50 & 0.25 \
\hline
\end{array}
\end{array}$$
-(Table: Music Downloads)Two consumers,Eli and Madison,like to download songs to their iPhones,and the table Music Downloads represents their willingness to pay for each downloaded song.If an individual song can be downloaded for $1.00,what is the total consumer surplus received by these consumers?
A) $19.25
B) $18.00
C) $10.00
D) $11.00

Question

Use the following to answer question 24: $$\begin{array}{l}
\text { Table: Music Downloads }\
\begin{array} { l c c } 
\hline \begin{array} { l } 
\text { Number } \
\text { of Music } \
\text { Downloads }
\end{array} & \begin{array} { c } 
\text { Eli's } \
\text { Willingness } \
\text { to Pay }
\end{array} & \begin{array} { c } 
\text { Madison's } \
\text { Willingness } \
\text { to Pay }
\end{array} \
\hline \text { 1st song } & \$ 4.50 & \$ 3.00 \
\text { 2nd song } & 3.50 & 2.00 \
\text { 3rd song } & 2.50 & 1.00 \
\text { 4th song } & 1.50 & 0.50 \
\text { 5th song } & 0.50 & 0.25 \
\hline
\end{array}
\end{array}$$
-(Table: Music Downloads)Two consumers,Eli and Madison,like to download songs to their iPhones,and the table Music Downloads represents their willingness to pay for each downloaded song.If an individual song can be downloaded for $1.00,what is the total consumer surplus received by these consumers?
A) $19.25
B) $18.00
C) $10.00
D) $11.00

Quizplus · Accepted Answer

The consumer surplus is the difference between what consumers are willing to pay and what they actually pay. For Eli, the surplus is ($4.50 - $1.00) + ($3.50 - $1.00) + ($2.50 - $1.00) + ($1.50 - $1.00) = $7.00. For Madison, the surplus is ($3.00 - $1.00) + ($2.00 - $1.00) + ($1.00 - $1.00) + ($0.50 - $1.00) = $4.00. Total consumer surplus is $7.00 + $4.00 = $11.00.

Use the Following to Answer Question 24 -(Table: Music Downloads)Two Consumers,Eli and Madison,like to Download Songs to Music