Asked by Claudia Gonzalez on Jul 15, 2024
Verified
Mark and Rasheed are at the bookstore buying new calculators for the semester.Mark is willing to pay $75 and Rasheed is willing to pay $100 for a graphing calculator.The price for a calculator at the bookstore is $65.How much is Mark's individual consumer surplus?
A) $10
B) $25
C) $35
D) $75
Consumer Surplus
The gap in finances between the consumers' ability and willingness to pay versus the real payment for a good or service.
Graphing Calculator
An electronic device capable of plotting graphs, solving simultaneous equations, and performing other tasks with variables.
- Understand thoroughly the concept of consumer surplus and how price dynamics alter it.
- Acquire the skill to calculate consumer surplus within various market scenarios.
Verified Answer
MM
mohit mehtaJul 17, 2024
Final Answer :
A
Explanation :
Mark's individual consumer surplus is the difference between what he is willing to pay ($75) and the actual price ($65), which equals $10.
Learning Objectives
- Understand thoroughly the concept of consumer surplus and how price dynamics alter it.
- Acquire the skill to calculate consumer surplus within various market scenarios.