Answer to Question #64098 in Macroeconomics for Melissa Fiscarelli

Question

(Table: Pumpkin Market) Examine the table Pumpkin Market. There are two consumers, Andy and Ben, in the market for pumpkins. Their willingness to pay for each pumpkin is shown in the table. There are two producers of pumpkins, Cindy and Diane, and their costs are shown in the table. The equilibrium price for pumpkins is $8 and the equilibrium quantity is 5. At the equilibrium price and quantity, Ben buys _____ pumpkins and his consumer surplus is _____.

Answer 1

consumer surplus is 5*(8-0)/2=$20
At the equilibrium price and quantity, Ben buys 5 pumpkins and his consumer surplus is 20$.