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-(Table: Pumpkin Market)There are two consumers,Andy and Ben,in the market for pumpkins.Their willingness to pay for each pumpkin is shown in the table Pumpkin Market.There are two producers of pumpkins,Cindy and Diane,and their costs are also shown.The equilibrium price for pumpkins is $8 and the equilibrium quantity is 5.At the equilibrium price and quantity,Andy buys _____ pumpkins and his consumer surplus is _____.
A)four;$2
B)three;$6
C)two;$8
D)one;$4

Question

Use the following to answer question: 
-(Table: Pumpkin Market)There are two consumers,Andy and Ben,in the market for pumpkins.Their willingness to pay for each pumpkin is shown in the table Pumpkin Market.There are two producers of pumpkins,Cindy and Diane,and their costs are also shown.The equilibrium price for pumpkins is $8 and the equilibrium quantity is 5.At the equilibrium price and quantity,Andy buys _____ pumpkins and his consumer surplus is _____.
A)four;$2 
B)three;$6 
C)two;$8 
D)one;$4

Quizplus · Accepted Answer

At the equilibrium price of $8, Andy's willingness to pay for the first pumpkin is $10, for the second pumpkin it is $8, and for the third pumpkin it is $6. This means he buys three pumpkins and his total expenditure is $24. His consumer surplus is equal to the difference between his willingness to pay and the market price, which is $2 for the first pumpkin, $0 for the second pumpkin, and $2 for the third pumpkin. So his total consumer surplus is $6. Choice A, C, and D are incorrect as they do not match the number of pumpkins Andy buys and/or his consumer surplus at the equilibrium price and quantity.

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