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The only four consumers in a market have the following willingness to pay for a goou: Buyer Willingness to Pay Carlos $15 bul
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Answer #1

A. If the market price is 20

Quailana,wilbour and ming-la will purchase the good.

Explanation: becouse of the willingness to pay. Carlos willingness to pay is 15 so he will not buy a good because price is more than that. But for rest of people willingness to pay is more than the price so they all can buy that good.

B.

It will be sell at 45 and MING-LA will buy it.

Consumer surplus:25

Explanation : when bid will happen and there will be only one good then, ming-la will buy that goood as he has the highest willingness to pay.

Consumer surplus will be 20-45=25.

C.

45

Consumer surplus= 25-20=5 for quailana

35-20=15 for wilbour

45-20=25 for ming-la

So total consumer surplus will be 45.

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