(a)
Answer to Problem 1P
No consumer surplus
Explanation of Solution
Leon
Introduction:
Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.
(b)
Consumer Surplus
Answer to Problem 1P
No consumer Surplus
Explanation of Solution
Since Albert is willing to pay $30 for a used copy of Nirvana's greatest Hits and the copy of it is being sold at $30, there is no consumer surplus.
Introduction:
Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.
(c)
Consumer Surplus
Answer to Problem 1P
No consumer Surplus
Explanation of Solution
There is no action of buying an d selling of mineral water between Stacey and 7-Eleven as Stace is willing to pay only $2 for a bottle of mineral water but 7-Eleven is willing to sell at $2.25. Therefore, there is no consumer surplus generated.
No Consumer Surplus.
Introduction:
Consumer Surplus is the difference between consumer willingness to pay and the amount he actually pays.
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Chapter 4 Solutions
Essentials of Economics
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