Answered

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Consider the market for seedless green grapes. The current price of a pound of seedless green grapes is $3. Two consumers, Leyla and Margaret, are willing to pay $4 and $5, respectively, for a pound of seedless green grapes. Two farmers are willing to sell seedless green grapes for as little as $2 and $3 per pound. How much is the consumer surplus in this market assuming each consumer purchases one pound of grapes and each farmer sells one pound of grapes

Sagot :

Answer:

$3

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

Consumer surplus of Leyla = $4 - $3 = $1

Consumer surplus of Margaret = $5 - $3 = $2

total surplus = $1 + $2 = $3

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