Question

Save Submit Ass Table 7-1 Sam Buyer Willingness To Pay Calvin $150.00 $135.00 Andrew $120.00 Lori $100.00 Refer to Table 7-1. If the price of the product is $90, then who would be willing to purchase the product? a. Calvin b. Calvin and Sam c. Calvin, Sam, and Andrew d. Calvin, Sam, Andrew, and Lori

Answer 1

Correct Answer:

Requirement 1: option D.

Since the price of the product is $ 90, and everybody is willing to pay more than $ 90 in order to purchase the product.

Requirement 2: option B.

Working:

Allen is getting $ 160 (40*$ 40) for tutoring for 4 hour

Allen is willing to receive ($ 10+ $ 18+ $ 28+$ 40) $ 96 for tutoring for 4 hours.

Therefore, Allen’s producers’ surplus id (160- 96) = $ 64.

End of answer.

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