What is the new consumer surplus

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Reference no: EM131581172

Question: Suppose the maximum willingness to pay for a new iPhone by the different consumers in a market is given in the table below

Consumer                   Maximum willingness to pay

#1                                         $550

#2                                         $530

#3                                         $490

#4                                         $440

#5                                         $420

#6                                         $370

#7                                         $350

#8                                         $310

a. If the price of iPhones is $420, how many iPhones will be sold?

b. What is the total consumer surplus in the market?

c. Suppose the price of iPhones decreases to $390. Now how many iPhones will be sold? What is the new consumer surplus?

Reference no: EM131581172

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