Recall the Application about the reason for the high price of movie popcorn to answer the following question(s).
-Recall the Application. Suppose a low demander is willing to pay $8 for a movie, while a high demander is willing to pay $12 for a movie and popcorn. If the theater charged $7 for admission and $4 for popcorn, the low demander would receive a consumer surplus of ________, and the high demander would receive a consumer surplus of ________.
A) $1; $1
B) $5; $6
C) $3; $9
D) $15; $21

Question

Quizplus · Accepted Answer

The low demander would pay $7 for admission, which is $1 less than their willingness to pay ($8), resulting in a $1 consumer surplus. The high demander would pay $7 for admission and $4 for popcorn, totaling $11, which is $1 less than their willingness to pay ($12), also resulting in a $1 consumer surplus.

Recall the Application About the Reason for the High Price