Question

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 S350, given the scenario described: O Collin would experience a decrease in consumer surplus, but Abe and Butch would experience a rise In consumer surplus. O total consumer surplus would rise. O Collin and Butch would experience a decrease in consumer surplus, but Abe's consumer surplus would rise. O total consumer surplus would fall.

Answer 1

Collin would be taken out of the business

Explanation:

The concept has been granted its popularity by the economist Alfred Marshall. Economic surplus, also known as Full excess healthcare, in modern economies refers to two equal amounts.

A shortfall of demand is the variance between production costs and their prices. The equilibrium curve is the region between both the price of the balance and the production pitch. If you pay 76p for a teapot, for example, and can buy it 50p, the profit is 26p.