Question

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?

Answer 1

2 flats will be sold

30000-25000 = 5000

Consumer surplus = 5000