Homework Answers
(1)
A consumer will buy the good as long as their Willingness to pay (WTP) is higher than the market price. So Brad, Juan and Sue will buy.
Total consumer surplus = WTP - Market price
= $[(60 - 30) + (45 - 30) + (35 - 30)]
= $(30 + 15 + 5)
= $50
NOTE: As HOMEWORKLIB Answering Policy, 1st question is answered.
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