Table 12-1

$$\begin{array} { | c | c | }
\hline \text { Person } & \begin{array} { c }
\text { Value of a White Water Rafting } \
\text { Trip } \
\text { (Dollars) }
\end{array} \
\hline \text { Ken } & 150 \
\hline \text { Alex } & 120 \
\hline \text { Brenda } & 90 \
\hline \text { Rob } & 60 \
\hline
\end{array}$$
-Refer to Table 12-1. Assume that the price of a white water rafting trip pass is $55 and that the price reflects the actual unit cost of the trip. How much consumer surplus accrues to Ken and Alex individually?
A)$65 and $95 respectively
B)$95 and $65 respectively
C)$95 and $35 respectively
D)$65 and $35 respectively

Question

Table 12-1
​
​
 $$\begin{array} { | c | c | } 
\hline \text { Person } & \begin{array} { c } 
\text { Value of a White Water Rafting } \
\text { Trip } \
\text { (Dollars) }
\end{array} \
\hline \text { Ken } & 150 \
\hline \text { Alex } & 120 \
\hline \text { Brenda } & 90 \
\hline \text { Rob } & 60 \
\hline
\end{array}$$
-Refer to Table 12-1. Assume that the price of a white water rafting trip pass is $55 and that the price reflects the actual unit cost of the trip. How much consumer surplus accrues to Ken and Alex individually?
A)$65 and $95 respectively
B)$95 and $65 respectively
C)$95 and $35 respectively
D)$65 and $35 respectively

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay and what they actually pay. Ken's consumer surplus is $150 - $55 = $95, and Alex's consumer surplus is $120 - $55 = $65.

Table 12-1 ​ ​ -Refer to Table 12-1

Table 12-1

-Refer to Table 12-1