Question

There are 100 consumers, each of whom values a concert ticket at a unique whole number dollar amount between $1 and $100. One customer is willing to pay $1, a second is willing to pay $2, a third is willing to pay $3, and so on. An unlimited number of concert tickets are on sale for $15 each. Create a simple demand curve to represent this scenario and using that curve calculate the total consumer surplus. What is the total consumer surplus in this market?

Answer 1

Answer:

To total Consumer Surplus in the market = $3,612.50

Explanation:

Quantity demanded:

is the amount that buyers are willing and able to buy at a particular price.

The demand curve:

shows how much buyers are willing and able to buy at different prices.

Consumer surplus is the difference between the maximum price a consumer is willing to pay for a good or service and its market price.