A market has four individuals, each considering buying a grill for his backyard. Assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill.
If the market price of grills increases from $310 to $350, given the scenario described:
A. total consumer surplus would fall by $120.
B. total consumer surplus would fall by $90.
C. Collin and Butch would experience a decrease in consumer surplus, but Abe's consumer surplus would rise.
D. Collin would experience a decrease in consumer surplus, but Abe and Butch would experience a rise in consumer surplus.
B. total consumer surplus would fall by $90.
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