Assume that when the price of good X is $10, each, I buy none. When the price is
ID: 1180165 • Letter: A
Question
Assume that when the price of good X is $10, each, I buy none. When the price is $9 each, I buy 1 per period. When the price is $8 each, I buy 2 per period. When the price is $7 each, I buy 3 per period. When the price is $6 each, I buy 4 per period, and when the price is $5 each, I buy 5 per period. Suppose the seller sets the price at $6 each, and I buy 4 per period. What is my consumer surplus?
A)
$24.
B)
zero.
C)
$10.
D)
$6.
E)
$3.
Assume that when the price of good X is $10, each, I buy none. When the price is $9 each, I buy 1 per period. When the price is $8 each, I buy 2 per period. When the price is $7 each, I buy 3 per period. When the price is $6 each, I buy 4 per period, and when the price is $5 each, I buy 5 per period. Suppose the seller sets the price at $6 each, and I buy 4 per period. What is my consumer surplus?
A)
$24.
B)
zero.
C)
$10.
D)
$6.
E)
$3.
Explanation / Answer
Ans:C