If the price of action figures was $8.00 each,his consumer surplus would be

A) $8.
B) $12.
C) $16.
D) $32.
E) $44.

Question

If the price of action figures was $8.00 each,his consumer surplus would beA) $8.B) $12.C) $16.D) $32.E) $44.

Manas Sinha · Accepted Answer

Final Answer : B, Explanation :  Consumer surplus is the difference between what consumers are willing to pay and what they actually pay. At a price of $8, the consumer buys 4 action figures. The willingness to pay for these 4 figures can be calculated from the given prices for quantities 1 through 4, which are $14, $12, $10, and $8, respectively. The total amount the consumer is willing to pay is $14 + $12 + $10 + $8 = $44. The actual amount paid is 4 figures at $8 each, totaling $32. Therefore, the consumer surplus is $44 - $32 = $12.

If the price of action figures was $8.00 each,his consumer surplus would be

A) $8.
B) $12.
C) $16.
D) $32.
E) $44.

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