1. Determine the cadence of consumer surplus generated in each of the next situations.
a. Leon goes to the clothing lay in to buy a new T-shirt, for which he is unforced to endure up to $10. He picks out adept he likes with a price tag of exactly $10. When he is yielding for it, he learns that the T-shirt has been discounted by 50%.
Leons consumer surplus is $5. If we subtract $5, the bar of funds he delivers, from $10, the amount of money he is willing to pay, $5 remains.
b. Alberto goes to the CD store hoping to find a used copy of Nirvanas Greatest Hits for up to $10. The store has one copy marketing for $10, which he purchases.
Albertos consumer surplus is $0. If we subtract $10, the amount of money he pays, from $10, the amount of money he is willing to pay, $0 remains.
c. After soccer practice, Stacey is willing to pay $2 for a bottle of mineral water. The 7-Eleven sells mineral water for $2.25 per bottle, so she declines to purchase it.
Because Stacey didnt buy the mineral water, no consumer surplus is created; the amount of money Stacey is willing to pay is less than the real price.
Charles Lee
Per.6
R100 Q3
3. thither are six potential consumers of computer games, each willing to buy only one game. Consumer I is willing to pay $40 for a computer game, consumer 2 is willing to pay $35, consumer 3 is willing to pay $30, consumer 4 is willing to pay $25, consumer 5 is willing to pay $20, and consumer 6 is willing to...If you necessity to get a full essay, order it on our website: Orderessay
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