He schedule below represents the willingness of a typical consumer to pay for wine in a year. suppose there are 10,000 identical consumers in the community. price per bottle of wine bottles of wine consumed per year $50 1 $40 2 $30 3 $20 4 $10 5 refer to exhibit 7-5. if the market price of wine is $30, the total consumer surplus for the community equals:

a. $30,000.
b. $60,000.
c. $50,000.
d. $20,000.

a. $30,000.

Explanation:

Willingness to pay is the highest amount a consumer would be willing to pay for a good or service. In this example, the willingness to pay is $50.

Consumer surplus is the difference between price of a product and the willingness to pay.

To calculate the total consumer surplus , refer to the attached image, the consumer surplus is the shaded triangle.

The total consumer surplus = 1/2 base × (height)

The height is the difference between the willingness to pay and the price of the wine = $50 -$30 =$20

The base is the total quantity purchases at $30 =

1/2 × 3 × ($20) = $30

There are 10,000 consumers, therefore consumer surplus =$30,000

I hope my answer helps you.

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o