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    Consumer surplus analysis

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    Please help me with the given microeconomics problem for an assignment:

    There are six potential consumers of computer games, each willing to buy only one game. Consumer 1 is willing to pay $40 for a computer game, consumer 2 is willing to pay $35, consumer 3 is willing to pay $30, consumer 4 is willing pay $25, consumer 5 is willing to pay $20, and consumer 6 is willing to pay $15.
    a. Suppose the market price is $29. What is the total consumer surplus?
    b. Now the market price decreases to $19. What is the total consumer surplus now?
    c. When the price fell from $29 to $19, how much did each consumer's individual consumer surplus change

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    Solution Preview

    a. The total consumer surplus is the area under the demand curve at the market price. Normally, we would calculate the the consumer demand for the entire market by calculating the area of the triangle formed by the axis and the demand curve. In this case, we can calculate it ...

    Solution Summary

    This solution provides a detailed explanation of the given economics problem.

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