Asked by Growing with Hussein on May 05, 2024

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(Table: Pumpkin Market) There are two consumers,Andy and Ben,in the market for pumpkins.Their willingness to pay for each pumpkin is shown in the table Pumpkin Market.There are two producers of pumpkins,Cindy and Diane,and their costs are also shown.The equilibrium price for pumpkins is $8 and the equilibrium quantity is 5.At the equilibrium price and quantity,Andy buys _____ pumpkins and his consumer surplus is _____.

A) four;$2
B) three;$6
C) two;$8
D) one;$4

Equilibrium Price

The cost at which the amount of products available for sale matches the volume of products consumers want to buy.

Equilibrium Quantity

The quantity at which the supply and demand for a good or service are equal at a certain price level, leading to market equilibrium.

Pumpkin Market

A market or segment of the economy focused on the production, distribution, and sale of pumpkins.

  • Determine the market's standing at equilibrium regarding price and quantity.
  • Understand the concept of producer surplus and how it is affected by market changes.
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SP
Shuvadip PramanikMay 06, 2024
Final Answer :
B
Explanation :
At the equilibrium price of $8, Andy's willingness to pay for the first pumpkin is $10, for the second pumpkin it is $8, and for the third pumpkin it is $6. This means he buys three pumpkins and his total expenditure is $24. His consumer surplus is equal to the difference between his willingness to pay and the market price, which is $2 for the first pumpkin, $0 for the second pumpkin, and $2 for the third pumpkin. So his total consumer surplus is $6. Choice A, C, and D are incorrect as they do not match the number of pumpkins Andy buys and/or his consumer surplus at the equilibrium price and quantity.