What is the total consumer surplus in the market

Reference no: EM13690200

Buyer Willingness to Pay

Michael $500

Earvin $400

Larry $350

Charles $300

Refer to Table 7-6. You have four essentially identical extra tickets to the Midwest Regional Sweet 16 game in the men NCAA basketball tournament. The table shows the willingness to pay of the four potential buyers in the market for a ticket to the game. You offer to sell the tickets for $400. How many tickets do you sell, and what is the total consumer surplus in the market?

A. one ticket; $100

B. two tickets; $100

C. two tickets; $0

D. three tickets; $0

Reference no: EM13690200

Questions Cloud

Conducts a travel cost study of recreational visits to grand : Teton National Park in Wyoming In addition to uncovering the marginal benefit to visitors from a given number of trips, the researchers also considered how the population of bighorn sheep affects the marginal benefits from visitation. This study reve..

Completely pay for the medical treatment : Calculate the maximum amount that we would be willing to pay to get rid of our loss. If we could buy an insurance policy for $30,000, which would completely pay for the medical treatment that we may need, should we purchase this insurance policy? Exp..

Is thinking of increasing products and lowering costs : William is the owner of a small pizza shop and is thinking of increasing products and lowering costs. William pizza shop owns four ovens and the cost of the four ovens is $1,000. Each worker is paid $500 per week.

Find the elasticity of demand for a quantity : Find the elasticity of demand for a quantity of 12. Does this number imply that quantity demanded is sensitive to price changes or insensitive?

What is the total consumer surplus in the market : You have four essentially identical extra tickets to the Midwest Regional Sweet 16 game in the men NCAA basketball tournament. The table shows the willingness to pay of the four potential buyers in the market for a ticket to the game. You offer to se..

Economically inefficient to efficient allocation of resource : Moving from an economically inefficient to efficient allocation of resources will necessarily increase benefits by more than costs.

Optimal stock of health capital : Suppose that she invests in a college education, expecting to get a better and higher wage job. Show how her optimal stock of health capital changes by the age of 30 due to the increased wage.

Compute the expected wealth and expected utility : The probability of getting ill is 25%. The utility function is U(W)= 3.2W ; U(W)=W2 , where W=wealth; log= logarithm base 10. Compute the expected wealth, expected utility (use up to 4 decimal places) and expected loss.

Explain the pros and cons associated with this case : Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 ..

User Account

All Pages