Ask Question
15 March, 13:35

Austin and Erin are willing to pay $10 and $9, respectively, for a ticket to a screening of a new movie. What is the total consumer surplus for both Austin and Erin if the market price of a ticket is $6?

A) $4

B) $7

C) $9

D) $19

+5
Answers (1)
  1. 15 March, 16:07
    0
    B) $7

    Explanation:

    The computation of the consumer surplus is shown below:

    Consumer surplus = Willing to pay - Market price

    For Austin, The consumer surplus = $10 - $6 = $4

    For Erin, The consumer surplus = $9 - $6 = $3

    So, the total consumer surplus = $4 + $3 = $7

    Simply we deduct the market price from the willing to pay so that the consumer surplus can be computed
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Austin and Erin are willing to pay $10 and $9, respectively, for a ticket to a screening of a new movie. What is the total consumer surplus ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers