Question

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.

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

Answer:

Answer 1