Asked by Stephanie Nieto on May 06, 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,total consumer surplus is:
A) $10.
B) $8.
C) $6.
D) $0.
Consumer Surplus
The discrepancy between the total sum consumers are prepared and able to spend on a good or service and what they ultimately pay.
Equilibrium Price
The market price at which the quantity of goods supplied equals the quantity of goods demanded.
Equilibrium Quantity
The quantity of goods or services supplied that equals the quantity demanded at the market equilibrium price.
- Clarify the difference between consumer surplus and producer surplus.
- Measure the entire, consumer, and producer surplus from illustrative market scenarios.
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Learning Objectives
- Clarify the difference between consumer surplus and producer surplus.
- Measure the entire, consumer, and producer surplus from illustrative market scenarios.
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