Question: Suppose the maximum willingness to pay for a new iPhone by the different consumers in a market is given in the table below
Consumer Maximum willingness to pay
#1 $550
#2 $530
#3 $490
#4 $440
#5 $420
#6 $370
#7 $350
#8 $310
a. If the price of iPhones is $420, how many iPhones will be sold?
b. What is the total consumer surplus in the market?
c. Suppose the price of iPhones decreases to $390. Now how many iPhones will be sold? What is the new consumer surplus?