Questions: Refer to Table 4-1. 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 95 dollars, total consumer surplus will be 0. 35. 80. 95.

Refer to Table 4-1. 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 95 dollars, total consumer surplus will be 0. 35. 80. 95.

Transcript text: Refer to Table 4-1. 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 $95 dollars, total consumer surplus will be $0. $35. $80. $95.

Solution

The answer is the first one: \$0.

Explanation: Consumer surplus is the difference between what consumers are willing to pay for a good and what they actually pay. In this case, the price of a bottle of champagne is \$95.

Curly is willing to pay \$50.
Moe is willing to pay \$30.
Larry is willing to pay \$15.

Since all three consumers are willing to pay less than the price of \$95, none of them will purchase the bottle of champagne. Therefore, the total consumer surplus is \$0 because no transactions occur and no surplus is generated.

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