QUESTION 2 You\'ve just bought a shirt for $10.99. But you like the shirt enough
ID: 1141462 • Letter: Q
Question
QUESTION 2 You've just bought a shirt for $10.99. But you like the shirt enough to have paid as much as $15.00 if necessary. Therefore, you realize that you got a net benefit of $4.01 (in the sense that you paid $10.99 for something that's worth $15.00 to you). The net benefit that a buyer gets from a purchase is called Oa. Willingness to pay b. Consumer surplus ° C. Producer surplus o d. Total surplus QUESTION 3 The following table shows the maximum that each person is willing to pay for Good Z. Buyers Willingness to Pay (S) Cassie Jamie John Jeremy Sarah If the price of Good Z is $4.50, then John's consumer surplus is $ numerical answer. For instance, if you think the answer is $5.55, simply enter 5.55.) 8.00 7.50 5.30 3.90 2.50 (Please enter your answer in the box provided. Enter only yourExplanation / Answer
(Question 2) Option (b)
The net benefit to consumer is measured by consumer surplus, equal to the difference between maximum willingness to pay and actual price paid.
(Question 3) John's consumer surplus ($) = 0.80
Consumer surplus = maximum willingness to pay - actual price paid = 5.30 - 4.50 = 0.80