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Business, 04.04.2020 03:42 dexterwilliams161

Market has four individuals, each considering buying a grill for his backyard. Assume that grills come in only one size and model. Abe considers himself a grill-master, and finds a grill a necessity, so he is willing to pay $400 for a grill. Butch is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Collin just met the girl of his dreams, and she loves a good grilled steak, so in his effort to impress her he is willing to pay $320 for a grill. Daniel loves grilled shrimp and thinks it might be cheaper in the long run if he buys a grill instead of eating out every time he wants grilled shrimp, so he is willing to pay $200 for a grill. Given the scenario described, if the market price of grills falls from $395 to $340, then we can say: Multiple Choice Abe's consumer surplus increases from $5 to $60, and total consumer surplus increases from $5 to $70. Abe's consumer surplus decreases from $60 to $5, and total consumer surplus decreases from $70 to $5. Butch's consumer surplus decreases from $10 to $0, and total consumer surplus increases from $10 to $80. Collin's consumer surplus increases from $0 to $20, and total consumer surplus increases from $5 to $70.

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