Refer to the table below. If the six people listed in the table are the only consumers in the market and the equilibrium price is $11, how much consumer surplus will the market generate?

Refer to the table below. If the six people listed in the table are the only consumers in the market and the equilibrium price is $11, how much consumer surplus will the market generate?



Using the values above, we first note that an individual will only purchase the good if his or her "maximum willing-to-pay price" is greater than or equal to the price of the product ($11). This implies that only Bob, Barb, and Bill are willing to purchase the good at a price of $11. Now we can calculate the consumer surplus by adding up the difference between the "maximum willing-to-pay price" and the actual price paid. Bob's consumer surplus is $2 ($13 – $11). Barb's consumer surplus is $1 ($12 – $11), and Bob's consumer surplus is $0 ($11 – $11). Thus, the total consumer surplus equals $3 ($2 + $1 + $0).
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