Evadneys willingness to pay price for a romantic novel is


(Evadney's willingness to pay price for a romantic novel is $50 but she pays $20 for the book, the difference between the indicated prices represents her)

Suppose Evadney's reservation price remains unchanged as in #Q64 above but the actual price she pays for the novel is now $65, which of the following statements would be true ?

(A) Her consumer surplus expands

(B) Her welfare declines

(C) Her consumer surplus is zero

 

(D) Her consumer surplus is unchanged

Request for Solution File

Ask an Expert for Answer!!
Business Economics: Evadneys willingness to pay price for a romantic novel is
Reference No:- TGS01490861

Expected delivery within 24 Hours