Question

1. Six fictional characters are faced with the choice of buying a vacation package. The available fund and the price of the vacation package are the constraints. Each wants to depends whether he/she can afford it. Based on your understanding of the concept of price, value, demand and quantity demanded and given the price of the package at $1000, buy the package, but, that Table 1 Individual Value Consumer Consumer Consumer surplussurplus surplus (P-$1000)P $900) P-$1100) Stewart little Hercules Batman Robin hood Mickey Mouse $1,200 aoo $1,000 $1,300200 $1,200 aoo $1.40040O 50o Homer How much consumer surpluses do each character derive from the trip when prices are $1000, $900, and $1100? How are consumer surpluses and prices related, negatively or positively? In table 1, which derives the most consumer surplus from the vacation package? a. b. c. 2. Refer to figure 1. How much is the consumer surplus? Figure 2 P(in S) 10

Answer 1