3. There are six potential consumers of computer games, each willing to buy only one game. Consumer...

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3. There are six potential consumers of computer games, each willing to buy only one game. Consumer 1 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 pay $15.

a. Suppose the market price is $29. What is the total consumer surplus?

b. The market price decreases to $19. What is the total consumer surplus now?

c. When the price falls from $29 to $19, how much does each consumer’s individual consumer surplus change? How does total consumer surplus change?

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Microeconomics

ISBN: 9781464143878

4th Edition

Authors: Paul Krugman, Robin Wells

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