Table 7-2 This table refers to five possible buyers' willingness to pay for a case of Vanilla Coke.
Buyer Willingness To Pay
David $8.50
Laura $7.00
Megan $5.50
Mallory $4.00
Audrey $3.50
Refer to Table 7-2. If the market price is $3.80,
a. David’s consumer surplus is $4.70 and total consumer surplus for the five individuals is $9.50.
b. David, Laura, and Megan will be the only buyers of Vanilla Coke.
c. Megan’s consumer surplus is $1.70 and total consumer surplus for the five individuals is $9.80.
d. the demand curve for Vanilla Coke, taking the five individuals into account, is horizontal.
c. Megan’s consumer surplus is $1.70 and total consumer surplus for the five individuals is $9.80.
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