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Calculate the value of maximum willingness to pay of the buyer if consumer surplus is $15 and the price of the good prevailing in the market is $22

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Calculate the value of maximum willingness to pay of the buyer if consumer surplus is $15 and the price of the good prevailing in the market is $22

Consumer’s gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price and up to the equilibrium quantity. Consumer surplus is represented by area A.

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