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
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
Problem 21P
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