Question

(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:

Answer 1

From the table, we can actually see that:

Andy’s willingness to pay = $ 8

Ben’s willingness to pay = $ 7

 

So a total of $ 15. Since the equilibrium quantity is 5, therefore the surplus is:

$ 10