Consider a hypothetical university with veryhomogeneous students and one professor whoeach year teaches a wine - tasting course with amaximum class size of 60 students. Knowing thatthe number of students who want to enroll in thecourse always by far exceeds the 60 available seatsin the course, the professor has students wait in lineoutside her office door. If waiting in line turns out tobe extreme (e.g., students bring sleeping bagsand sleep outside the professor's door in order toget a spot in the class), does that tell you that theprofessor is generating a lot of consumer surplusfor students by teaching the course? Explain yourreasoning carefully.

Consumer surplus is the difference between the maximum price a consumer is willing to pay and the…

Answered: Consider a hypothetical university with…

Consider a hypothetical university with very homogeneous students and one professor who each year teaches a wine - tasting course with a maximum class size of 60 students. Knowing that

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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*YOU ONLY NEED TO ANSWER QUESTION C*
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