there is a table with one column labeled student and another column named willingness to pay. the students are Anthony, Amanda, Lily, Francisco and Max. There willingness to pay in this order is $500, $400, $300, $200, and $100. Amazon has a "Lighting Deal" where it slashes the price of one item. At 3:15 p.m. today, they announced that the item was a new tablet with a sales price of $200 which is less than half the original price. What is the total consumer surplus for the five students?

Consumer surplus is the difference between what consumers are willing to pay and what they actually pay for a good or service. To calculate the total consumer surplus for the five students:

1. **Determine the willingness to pay for each student:**
   - Anthony: \$500
   - Amanda: \$400
   - Lily: \$300
   - Francisco: \$200
   - Max: \$100

2. **Identify the actual price of the tablet:** \$200

3. **Calculate the consumer surplus for each student who is willing to pay more than or equal to the actual price (\$200):**
   - Anthony: $ \$500 - \$200 = \$300 $
   - Amanda: $ \$400 - \$200 = \$200 $
   - Lily: $ \$300 - \$200 = \$100 $
   - Francisco: $ \$200 - \$200 = \$0 $
   - Max: $ \$100 - \$200 = -\$100 $ (Since Max is not willing to pay more than or equal to \$200, he doesn't buy the tablet, so his consumer surplus is \$0.)

4. **Add up the consumer surplus values:**
   - Total consumer surplus $ = \$300 + \$200 + \$100 + \$0 + \$0 = \$600 $

Thus, the total consumer surplus for the five students is **\$600**.

Would you like more details, or do you have any other questions? Here are five related questions:

1. What is the definition of consumer surplus in economics?
2. How would the total consumer surplus change if the price were set at \$250?
3. What is the significance of consumer surplus in market efficiency?
4. Can consumer surplus be negative, and what does it imply?
5. How does consumer surplus relate to producer surplus?

**Tip:** Consumer surplus is a measure of the economic benefit to consumers from participating in the market, representing the difference between what they are willing to pay and what they actually pay.

Learn how to calculate total consumer surplus using a specific example involving students' willingness to pay for a new tablet on sale. Understand the economic concept of consumer surplus and its calculation steps. Suitable for advanced economics students.

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