Essay
Suppose there are three buyers (A, B, and C) in a competitive market with the marginal benefit (MB) schedules like those shown in the table below. Calculate the consumer surplus using the market demand curve. Assume that the market price is $10. Show that you get the same answer by adding the consumer surplus for all three buyers. How much does consumer surplus increase for the market as a whole and for each individual when the market price falls to $8? 
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For the market demand curve, the consum...View Answer
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Correct Answer:
Verified
For the market demand curve, the consum...View Answer
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