Question

last year, the pottery palace supplied 8,000 ceramic pots at $40 each. this year, the company supplied the same quantity of ceramic pots at $55 each. based on this evidence, the pottery palace has experienced

• an increase in supply
• a decrease in the quantity supplied.
• a decrease in supply
• an increase in the quantity supplied.

question 13
table 4 - 5

consumer	willingness to pay
moe	30
larry	15

refer to table 4 - 5. the table above lists the highest prices three consumers, curly, moe, and larry, are willing to pay for a bottle of champagne. if the price of one of the bottles is $27 dollars, total consumer surplus will be

• $14
• $18
• $32

Explanation:

Step1: Define consumer surplus formula

Consumer surplus = Willingness - to - pay - Price

Step2: Calculate consumer surplus for each consumer

Curly: $50 - 27= 23$
Moe: $30 - 27 = 3$
Larry: $15 - 27=- 12$ (but consumer surplus can't be negative, so we take 0)

Step3: Calculate total consumer surplus

Total consumer surplus=$23 + 3+0=26$

Answer:

$26$