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Answer to Question #237468 in Microeconomics for Anuj
Question #237468
Suppose there are three identical flats available to be purchased. Buyer 1 is
willing to pay €30,000 for one, buyer 2 is willing to pay €25,000 for one, and
buyer 3 is willing to pay €20,000 for one. If the price is €25,000, how many
flats will be sold and what is the value of consumer surplus in this market?
willing to pay €30,000 for one, buyer 2 is willing to pay €25,000 for one, and
buyer 3 is willing to pay €20,000 for one. If the price is €25,000, how many
flats will be sold and what is the value of consumer surplus in this market?
Expert's answer
2 flats will be sold
30000-25000 = 5000
Consumer surplus = 5000
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