Suppose that a customer's willingness to pay for a product is $79, and the seller's willingness to sell is $64

Economics Mar 08, 2021

Suppose that a customer's willingness to pay for a product is $79, and the seller's willingness to sell is $64. If the negotiated price is $68, how much is consumer surplus?

Question 7 options:

$11

$15

$21

Expert Solution

Answer

So, the correct option is 1st "$11".

Explanation

Computation of Consumer Surplus:

Consumer Surplus = Consumer Willingness - Negotiated Price

= $79 - $68

Consumer Surplus = $11

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