ESSENTIALS OF ECONOMICS
4th Edition
ISBN: 9781464188466
Author: KRUGMAN
Publisher: Norton, W. W. & Company, Inc.
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Question
Chapter 4, Problem 1P
To determine
(a)
Expert Solution
Answer to Problem 1P
No consumer surplus
Explanation of Solution
Leon willingness to pay is upto $10. Price of T-shirt is exactly $10. So, no consumer surplus.
Economics Concept Introduction
Introduction:
Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.
To determine
(b)
Consumer Surplus
Expert Solution
Answer to Problem 1P
No consumer Surplus
Explanation of Solution
Since Albert is willing to pay $30 for a used copy of Nirvana's greatest Hits and the copy of it is being sold at $30, there is no consumer surplus.
Economics Concept Introduction
Introduction:
Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.
To determine
(c)
Consumer Surplus
Expert Solution
Answer to Problem 1P
No consumer Surplus
Explanation of Solution
There is no action of buying an d selling of mineral water between Stacey and 7-Eleven as Stace is willing to pay only $2 for a bottle of mineral water but 7-Eleven is willing to sell at $2.25. Therefore, there is no consumer surplus generated.
No Consumer Surplus.
Economics Concept Introduction
Introduction:
Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.
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Chapter 4 Solutions
ESSENTIALS OF ECONOMICS
Knowledge Booster
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