Asked by Azriel Gamez on May 06, 2024
Verified
(Table: Willingness to Pay for Peanuts) Using the table Willingness to Pay for Peanuts,if the price of a bag of peanuts is $9,who will purchase a bag?
A) George only
B) all of the consumers
C) Dave only
D) Alvin and Theodore only
Willingness to Pay
The maximum amount an individual is prepared to sacrifice to procure a good or service or to avoid something undesirable.
- Comprehend the idea of total surplus along with its elements: consumer surplus and producer surplus.
Verified Answer
MS
Maggie StrassburgerMay 09, 2024
Final Answer :
A
Explanation :
At a price of $9, only George will purchase a bag of peanuts because his willingness to pay is at or above $9, while the willingness to pay of the other consumers is below $9.
Learning Objectives
- Comprehend the idea of total surplus along with its elements: consumer surplus and producer surplus.
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