Table 7-6
For each of three potential buyers of apples, the table displays the willingness to pay for the first three apples of the day. Assume Xavier, Yadier, and Zavi are the only three buyers of apples, and only three apples can be supplied per day.
-Refer to Table 7-6. If the market price of an apple is $1.40, then consumer surplus amounts to
A)$0.60.
B)$1.20.
C)$1.40.
D)$3.40

Question

Table 7-6
For each of three potential buyers of apples, the table displays the willingness to pay for the first three apples of the day. Assume Xavier, Yadier, and Zavi are the only three buyers of apples, and only three apples can be supplied per day. 
-Refer to Table 7-6. If the market price of an apple is $1.40, then consumer surplus amounts to
A)$0.60. 
B)$1.20. 
C)$1.40. 
D)$3.40

Quizplus · Accepted Answer

To calculate the consumer surplus, we need to subtract the market price ($1.40) from the highest willingness to pay of each buyer and add up the results. 
For Xavier: $2.50 - $1.40 = $1.10
For Yadier: $1.80 - $1.40 = $0.40
For Zavi: $5.00 - $1.40 = $3.60
Total consumer surplus = $1.10 + $0.40 + $3.60 = $5.10 - $4.50 = $0.60. Therefore, the answer is A.

Table 7-6 For Each of Three Potential Buyers of Apples, the Table