Table 12-1
-Refer to Table 12-1. Assume that the price of a weekend ski pass is $45 and that the price reflects the actual unit cost of providing a weekend of skiing. How much consumer surplus accrues to Anna and Clem individually?
A)$125 and $20 respectively
B)$105 and $30 respectively
C)$85 and $40 respectively
D)$65 and $50 respectively

Question

Table 12-1 
-Refer to Table 12-1. Assume that the price of a weekend ski pass is $45 and that the price reflects the actual unit cost of providing a weekend of skiing. How much consumer surplus accrues to Anna and Clem individually?
A)$125 and $20 respectively 
B)$105 and $30 respectively 
C)$85 and $40 respectively 
D)$65 and $50 respectively

Quizplus · Accepted Answer

To calculate Anna's consumer surplus, we need to subtract the amount she is willing to pay ($150) from the actual price she pays ($120): 
$150 - $120 = $30

To calculate Clem's consumer surplus, we need to subtract the amount he is willing to pay ($65) from the actual price he pays ($45): 
$65 - $45 = $20

Therefore, Anna's consumer surplus is $30 and Clem's consumer surplus is $20, which gives us a total consumer surplus of $50 ($30 + $20). The best choice is B.

Table 12-1 -Refer to Table 12-1. Assume That the Price of a Price