Reference no: EM132264201

1. Cups of coffee            1           2            3           4            5
2.  marginal benefit     4.00      3.00       2.00      1.00        0
3.  marginal cost         1.50      1.75       2.00       2.25       2.50   
4. total surplus            8             6            4            2           0
5. consumer surplus   2.50       1.25       0           -1.25      -2.50 
6. producer surplus     5.50       4.75     4.00        3.25        2.50

Is the contribution to total surplus always positive?  why or why not?

What is the total surplus, consumer surplus, and producer surplus at the equilibrium?

If price was fixed at $3 what is total surplus? Is there deadweight loss?

Is there another way to consume same number of cups of coffee and increase total surplus? why?