Amazon has a Lightning Dear where it slashes the price of on

Amazon has a \"Lightning Dear where it slashes the price of one item. At 3:15 PM today, they announced that the item was n new tablet with n soles price of J1GCJ, less than half the original price. The table below contains the maximum willingness to pay for five college students wanting to buy a tablet on Amazon. What is total consumer surplus for the five students? If the price increases from $150 to $350. what Is the change In total consumer surplus? Pay attention to the direction or change.

Solution

Student

Willingness to pay

Consumer surplus when the price is $150

Consumer surplus when the price is $350

Anthony

$500

$350

$150

Amanda

$400

$250

$50

Lily

$300

$150

($50)

Francisco

$200

$50

($150)

Julio

$100

($50)

($250)

Total consumer surplus

$750

($250)

1) The total consumer surplus of the five students is $750.

2) If the price increases from $150 to $350, the total consumer surplus come down from $750 to ($250), hence there is a decrease of $1000 of consumer surplus.

I hope my solution solves your query.

Student	Willingness to pay	Consumer surplus when the price is $150	Consumer surplus when the price is $350
Anthony	$500	$350	$150
Amanda	$400	$250	$50
Lily	$300	$150	($50)
Francisco	$200	$50	($150)
Julio	$100	($50)	($250)
Total consumer surplus	$750	($250)