Table 4-5

-Refer to Table 4-5. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one ticket falls from $50 to $20,
A) only three tickets will be sold.
B) consumer surplus decreases from $48 to $24.
C) consumer surplus increases from $0 to $62.
D) everyone will buy a ticket.

Question

Table 4-5
 
-Refer to Table 4-5. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one ticket falls from $50 to $20,
A) only three tickets will be sold. 
B) consumer surplus decreases from $48 to $24. 
C) consumer surplus increases from $0 to $62. 
D) everyone will buy a ticket.

Quizplus · Accepted Answer

When the price falls from $50 to $20, more consumers are willing to buy tickets, increasing the consumer surplus from $0 to $62 as the difference between what consumers are willing to pay and the actual price increases.

Table 4-5 -Refer to Table 4-5. the Table Above Lists the Highest