Natasha, Nelson, and Nikolai are all looking to buy flashlights for a camping trip. Natasha is willing to pay $4, Nelson is willing to pay $10, and Nikolai is willing to pay $20. If the actual price of a flashlight turns out to be $9, what is the total consumer surplus for these three shoppers?1 point$12$260$7
Question
Natasha, Nelson, and Nikolai are all looking to buy flashlights for a camping trip. Natasha is willing to pay 10, and Nikolai is willing to pay 9, what is the total consumer surplus for these three shoppers?1 point260$7
Solution
Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay.
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Natasha is willing to pay 9. Since she is not willing to pay this much, she does not buy the flashlight and her consumer surplus is $0.
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Nelson is willing to pay 9. He buys the flashlight and his consumer surplus is 9 = $1.
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Nikolai is willing to pay 9. He buys the flashlight and his consumer surplus is 9 = $11.
So, the total consumer surplus for these three shoppers is 1 (Nelson) + 12.
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