Question: The table sets out the train travel demand plans for Antonella, Denisse and Antonieta. Price (cents per Quantity demanded (kilometer- passenger) kilometer- passenger) Antonella Denisse
The table sets out the train travel demand plans for Antonella, Denisse and Antonieta. Price (cents per Quantity demanded (kilometer- passenger) kilometer- passenger) Antonella Denisse Antonieta 10 500 300 60 20 450 250 50 30 400 200 40 40 350 150 30 50 300 100 20 60 250 50 10 70 200 0 0 a) If the price of the train trip is 40 cents per passenger kilometer, what is the consumer surplus for each passenger?
b) Which passenger has the largest consumer surplus? Explain why.
c) If the price rises to 50 cents per passenger-kilometer, what is the change in consumer surplus for each passenger?
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