A market has four individuals,each considering buying a grill for his backyard.Assume that grills come in only one size and model.Abe considers himself a grill-master,and finds a grill a necessity,so he is willing to pay $400 for a grill.Butch is a meat-lover,honing his grilling skills,and is willing to pay $350 for a grill.Collin just met the girl of his dreams,and she loves a good grilled steak,so in his effort to impress her he is willing to pay $320 for a grill.Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp,so he is willing to pay $200 for a grill. If the market price of grills increases from $300 to $325,given the scenario described:
A) Collin would drop out of the market.
B) Collin's surplus would decrease the most.
C) Collin is the only consumer who would be affected in terms of surplus.
D) Daniel's surplus would decrease.

Question

Quizplus · Accepted Answer

Collin would drop out of the market because his willingness to pay ($320) is less than the new market price ($325).

A Market Has Four Individuals,each Considering Buying a Grill for His