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

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
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Q6

First pack
$20
Second pack
$15
Third pack
Fourth pack
$10
$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
3 packs and CS-$20
Transcribed Image Text:First pack $20 Second pack $15 Third pack Fourth pack $10 $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 3 packs and CS-$20
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