Amazon has a \"Lightning Deal\" where it slashes the price of one item. At 3:15 PM today, they announced that the item was a new tablet with a sales price of $150, less than half the original price. The table below contains the maximum willingness to pay for five college students wanting to buy a tablet on Amazon.
students willing to pay
Amanda $500
David $400
Lily $300
Anthony $200
Julio $100
1. What is total consumer surplus for the five students?
2. If the price increases from $150 to $350, what is the change in total consumer surplus? Pay attention to the direction of change.
Suppose that Michelle buys a cappuccino from Paul\'s Cafe and Bakery for $6.25. Michelle was willing to pay up to $8.75 for the cappuccino and Paul\'s Cafe and Bakery was willing to accept $2.25 for the cappuccino. Based on this information, answer the questions below.
a)Michelle\'s consumer surplus is equal to?
b) Paul\'s Bakery\'s producer surplus is equal to?