Answer:
$80
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
