You have recently bought four tickets for $15 each to a professional baseball game. You would have been willing to pay $25 for a ticket, but probably would have bought fewer tickets if that were the case. Calculate your total consumer surplus as area.

Answer:

Explanation:

Step one:

What is consumer surplus area?

"Consumer Surplus reflects the difference between what a consumer is willing and able to pay for a product, and what the consumer actually ends up paying.

"

The area of surplus is calculated using the formula for the area of the bounded triangle.

Area of surplus =1/2 b*h

where b= the quantity

           h= consumer surplus

Step two:

given data

the quantity of tickets = 4

b=Q-O------------ (from the chart attached)

cost per tieckt= $15

Total cost of 4 tickets= 15*4= $60

the actual price is $60

Since you are willing to pay $25 per ticket

the total amount you are willing to  pay is = 25*4= $100

Consumer surplus = y-p------------ (from the chart attached)

Consumer surplus = $100 – $60

Consumer surplus = $40

Area of surplus = 1/2 x (4) x40 = $80

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