Amazon has a "Lightning Deal" where it slashes the price of one item. At 3:15 p.m. today, they announced that the item was a new tablet with a sales price of $150 which is less than half the original price. The table contains the maximum willingness to pay of five college students wanting to buy a tablet on Amazon. Willingness to pay $500 $400 $300 $200 $100 Student Anthony Amanda Lily Francisco Max What is total consumer surplus for the five students? If the price increases from $150 to $350, what is the change in total consumer surplus? $

Amazon has a "Lightning Deal" where it slashes the price of one item. At 3:15 p.m. today, they announced that the item was a new tablet with a sales price of $150 which is less than half the original price. The table contains the maximum willingness to pay of five college students wanting to buy a tablet on Amazon. Willingness to pay $500 $400 $300 $200 $100 Student Anthony Amanda Lily Francisco Max What is total consumer surplus for the five students? If the price increases from $150 to $350, what is the change in total consumer surplus? $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Consumer surplus is equal to the difference between
Betty is willing to pay up to $150 for a particular pair of boots. She is able to buy the boots for $120. The marginal cost of producing the boots is $60. How large is the total economic surplus associated with her purchase of the boots?
50 45 - 40 35 - 30 25 20 Price 15 10 5 0 1 0 10 20 30 40 50 60 70 80 90 100 Quantity Consider the figure shown. What is the consumer surplus when the P=$25? k
Please answer the following, a diagram and one paragraph should help support your answer. With consideration for elasticity (especially PED), what would be one industry in which the government instituting a subsidy would make sense and why? EXAMPLE: It would make sense for the government to subsidize the fashion industry because it is generally elastic in terms of PED, and it would benefit both producers and consumers due to etc.
If total surplus is $200 and consumer surplus is $90 Find producer surplus
The cookie demand curve slopes downward. When the price of cookies is $ 2, the quantity demanded is 100. If the price increases to $ 3, what happens to the consumer surplus?
Define consumer and producer surplus and give a geometric interpretation of each.
If producers surplus is $33 and the consumer surplus is $12 Find total surplus
A consumer is willing to pay $300 for cricket match. The cost of the ticket is $120. What is consumer surplus ?
Torsten's Marginal Willingness to Pay (MWTP) for flour is given in the table below. If the price of flour falls from $32 to $25, what is the change in Torsten's surplus? Flour can be bought in integer values only. Enter a number only, drop the $ sign. Include a negative sign if surplus decreases. Bags of flour MWTP 1 $48 2 $41 3 $38 4 $27 5 $16 6 $14 7 $7
Eddie goes to Best Buy to buy a new TV. He is willing to pay $400 for the TV he wants. If the price for the TV is $275, what is Eddie's consumer surplus? $125 $675 $275
Consider the market for packs of pens on campus, the demand for which is shown in the graph below. How much larger is consumer surplus when the price of pens is $1 instead of $3?.