Question

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 buy the package, but, that 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, 1. Table 1 Value Consumer Consumer Consumer surplus sssurplus P-$1000) P-$900 P-$1100) Individual $1,200 $1,000 Stewart little Hercules Batman Robin hood Mickey Mouse Homer $1,300 $1,200 $1,400 $1,500 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?

Answer 1