Joy is thinking to buy a new chair for his office. The market price of the chair is $44 and Joy's maximum willingness to pay for that chair is $55 What would be the Consumer surplus involved in this transaction

Joy is thinking to buy a new chair for his office. The market price of the chair is $44 and Joy's maximum willingness to pay for that chair is $55 What would be the Consumer surplus involved in this transaction

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter3: Market Demand And Supply

Section3.A: Consumer Surplus, Proudcer Suplus, And Market Efficency

Problem 16SQ

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Question

Joy is thinking to buy a new chair for his office. The market price of the chair is $44 and Joy's maximum willingness to pay for that chair is $55

What would be the Consumer surplus involved in this transaction

Consumer’s gain from trade. The consumer surplus is the area below the demand curve but above the equilibrium price and up to the equilibrium quantity. Consumer surplus is represented by area A.

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