Question

Below are data on the marginal willingness to pay (MWTP) of a consumer of organic apples....

Below are data on the marginal willingness to pay (MWTP) of a consumer of organic apples. Note that the MWTP to go from zero (0) to 1 kg per week is $5.00.

Consumption level (apples/week, kg)

MWTP ($)

0

5.00

1

4.00

2

3.20

3

2.60

4

2.20

5

1.80

6

1.50
  1. What is the consumer’s total willingness to pay at a consumption level of 4 apples? Illustrate the total willingness to pay using a diagram.

  1. If the actual price of organic apples is $2.40, how many apples would this individual consume?

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