First pack $20 Second pack $15 Third pack $10 Fourth pack $8 Fifth pack $5 The table above shows each smoker's willingness to pay for a pack of cigarettes (each smoker's WTP schedule is identical to the others). If the price per pack is $9 (assume the supply curve is perfectly elastic), how many packs did each smoker buy and what is h consumer surplus (CS)? 4 packs and CS=$17 O 3 packs and CS-$18 3 packs and CS=$25 o 3 packs and CS-$20

First pack $20 Second pack $15 Third pack $10 Fourth pack $8 Fifth pack $5 The table above shows each smoker's willingness to pay for a pack of cigarettes (each smoker's WTP schedule is identical to the others). If the price per pack is $9 (assume the supply curve is perfectly elastic), how many packs did each smoker buy and what is h consumer surplus (CS)? 4 packs and CS=$17 O 3 packs and CS-$18 3 packs and CS=$25 o 3 packs and CS-$20

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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