There are 100 consumers, each of whom values a concert ticket at a unique whole number dollar amount between $1 and $100. one customer is willing to pay $1, a second is willing to pay $2, a third is willing to pay $3, and so on. an unlimited number of concert tickets are on sale for $15 each. what is the total consumer surplus in this market

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Business

Skye Ponce

11 December, 02:51

There are 100 consumers, each of whom values a concert ticket at a unique whole number dollar amount between $1 and $100. one customer is willing to pay $1, a second is willing to pay $2, a third is willing to pay $3, and so on. an unlimited number of concert tickets are on sale for $15 each. what is the total consumer surplus in this market

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Isiah Mckee · Answer 1

100 customers each valuing a ticket for a consecutive dollar amount between $1 and $100 would lead to a total available customer value of $5050. If there are 100 tickets available at $15, the market value of the tickets is $1500. People valuing the tickets at less than $15 will reduce the surplus by $62.50, and people valuing the tickets at more than $15 will increase the surplus by $3675. Therefore the total consumer surplus in this market is $3,612.50.