Table 4-4

-Refer to Table 4-4. The table above lists the highest prices three consumers, Curly, Moe, and Larry, are willing to pay for a bottle of champagne. If the price of one of the bottles is $24 dollars,
A) Curly will buy two bottles, Moe will buy one bottle and Larry will buy no bottles.
B) Curly will receive $26 of consumer surplus from buying one bottle.
C) Curly and Moe receive a total of $80 of consumer surplus from buying one bottle each. Larry will buy no bottles.
D) Larry will receive $15 of consumer surplus since he will buy no bottles.

Question

Table 4-4
 
-Refer to Table 4-4. The table above lists the highest prices three consumers, Curly, Moe, and Larry, are willing to pay for a bottle of champagne. If the price of one of the bottles is $24 dollars,
A) Curly will buy two bottles, Moe will buy one bottle and Larry will buy no bottles. 
B) Curly will receive $26 of consumer surplus from buying one bottle. 
C) Curly and Moe receive a total of $80 of consumer surplus from buying one bottle each. Larry will buy no bottles. 
D) Larry will receive $15 of consumer surplus since he will buy no bottles.

Quizplus · Accepted Answer

Curly's willingness to pay is $50, so if he buys a bottle for $24, his consumer surplus is $50 - $24 = $26.

Table 4-4 -Refer to Table 4-4. the Table Above Lists the Highest