There are six potential consumers of computer games, each willing to buy only one game. The willingness to pay (WTP) of eachis shown in the table.Consumer123456fWTP$403.530252015a. Suppose the market price is $29. What is the totalconsumer surplus?b. The market price decreases to $19. What is the totalconsumer surplus now?59IncorrectIncorrectQuestion Source: Krugman/Wells Se-Microeconomics | Publaher Wor

Consumer Surplus:Consumer surplus is a measure of the ecenomic benefit that consumers receive when…

Answered: There are six potential consumers of…

There are six potential consumers of computer games, each willing to buy only one game. The willingness to pay (WTP) of is shown in the table. Consumer 2 3 4 5 ( WTP $40 35 30 25 20 15

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Perfect Competition

It is the structure of the market that is said to exist when with many buyers and sellers exchanging similar commodities and its price is fixed by the market forces, demand, and supply, and a single firm cannot cause an impact over the price or market value of the homogenous product. This structure of the market is called perfect competition.

Question

There are six potential consumers of computer games, each willing to buy only one game. The willingness to pay (WTP) of each
is shown in the table.
Consumer
1
2
3
4
5
6
f
WTP
$40
3.5
30
25
20
15
a. Suppose the market price is $29. What is the total
consumer surplus?
b. The market price decreases to $19. What is the total
consumer surplus now?
59
Incorrect
Incorrect
Question Source: Krugman/Wells Se-Microeconomics | Publaher Wor

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