Table 3-1

-Refer to Table 3-1. If the table represents the willingness to pay of four buyers and the price of the product is $30, then their total consumer surplus is
A) $−10.
B) $−6.
C) $20.
D) $30.

Question

Table 3-1
 
-Refer to Table 3-1. If the table represents the willingness to pay of four buyers and the price of the product is $30, then their total consumer surplus is
A) $−10. 
B) $−6. 
C) $20. 
D) $30.

Quizplus · Accepted Answer

Consumer surplus is the difference between what buyers are willing to pay and what they actually pay. If the willingness to pay is higher than the price, the surplus is positive. Assuming the table shows willingness to pay values higher than $30 for some buyers, the total consumer surplus would be the sum of these differences.

Table 3-1 -Refer to Table 3-1. If the Table Represents the Willingness