(Table: Consumer Surplus) Use Table: Consumer Surplus.Assume that each student wants to buy one ticket.If the price of a ticket to see The Nutty Nutcracker is $50,Narum's consumer surplus is:

A) $60.
B) $50.
C) $15.
D) $240.

Question

Jevitha Ragupathy · Accepted Answer

Final Answer : C, Explanation :  According to the table, at a price of $50, the quantity demanded by Narum is 3 tickets. The maximum price he is willing to pay for a ticket is $65. Therefore, his consumer surplus can be calculated as:Consumer surplus = (maximum price willing to pay - actual price paid) x quantity purchasedConsumer surplus = ($65 - $50) x 3 = $45However, since Narum only wants to buy one ticket, his consumer surplus would be $15. Therefore, the correct answer is C.

(Table: Consumer Surplus) Use Table: Consumer Surplus.Assume that each student wants to buy one ticket.If the price of a ticket to see The Nutty Nutcracker is $50,Narum's consumer surplus is:

A) $60.
B) $50.
C) $15.
D) $240.

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Learning Objectives

Related questions

(Table: Consumer Surplus) Use Table: Consumer Surplus.Assume that each student wants to buy one ticket.If the price of a ticket to see The Nutty Nutcracker is $50,Narum's consumer surplus is:A) $60.B) $50.C) $15.D) $240.

Definitions

Learning Objectives

Learning Objectives

Related questions

(Table: Consumer Surplus) Use Table: Consumer Surplus.Assume that each student wants to buy one ticket.If the price of a ticket to see The Nutty Nutcracker is $50,Narum's consumer surplus is:

A) $60.
B) $50.
C) $15.
D) $240.