What is steves total willingness to pay for specific bags

Reference no: EM131442959

Question: Steve loves potato chips. His weekly demand curve is shown in the following exhibit.

416_Potato chips.png

a. How much is Steve willing to pay for one bag of potato chips?

b. How much is Steve willing to pay for a second bag of potato chips?

c. If the actual market price of potato chips is $2.50, and Steve buys five bags as shown, what is the value of his consumer surplus?

d. What is Steve's total willingness to pay for five bags?

Reference no: EM131442959

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