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Suppose There Are Three Buyers (A,B,and C)in a Competitive Market

Question 141

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Suppose there are three buyers (A,B,and C)in a competitive market with the marginal benefit (MB)schedules like those shown in the table below.Calculate the consumer surplus using the market demand curve.Assume that the market price is $10.Show that you get the same answer by adding the consumer surplus for all three buyers.How much does consumer surplus increase for the market as a whole and for each individual when the market price falls to $8? Suppose there are three buyers (A,B,and C)in a competitive market with the marginal benefit (MB)schedules like those shown in the table below.Calculate the consumer surplus using the market demand curve.Assume that the market price is $10.Show that you get the same answer by adding the consumer surplus for all three buyers.How much does consumer surplus increase for the market as a whole and for each individual when the market price falls to $8?

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