Discussion:
1.Using the information below about individuals and their willingness to pay for a bottle of ginger ale, calculate the total consumer surplus at a market price of $5.
|
Maximum amount a buyer would pay for ginger ale
|
Scott
|
$10
|
Dennis
|
$4
|
Greg
|
$8
|
Dave
|
$7
|
Mike
|
$5
|
Using the information below about willingness to supply ginger ale, calculate the total producer surplus at a market price of $5.
|
Marginal cost of producing ginger ale
|
Gene
|
$6
|
Brandon
|
$3
|
Matt
|
$2
|
Cooper
|
$11
|
Jed
|
$5
|
How do your answers change if the price falls to $2?