Economics: Principles, Problems, and Policies, 19th Edition

Published by McGraw-Hill Education
ISBN 10: 0073511447
ISBN 13: 978-0-07351-144-3

Chapter 5 - Market Failures: Public Goods and Externalities - Problems - Page 113: 1

Answer

New consumer surplus: -3

Work Step by Step

Since the new equilibrium price is $11, the consumer surplus for Bob: 13 -11 = 2 Barb: 12 - 11 = 1 Bill: 11 - 11 = 0 Bart: 10 - 11 = -1 Brent: 9 - 11 = -2 Betty: 8 - 11 = -3 Total consumer surplus: 2 + 1 + 0 + (-1) + (-2) + (-3) = -3
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