Answer:
Two vases will be sold.
The value of consumer surplus is $5.
Step-by-step explanation:
There are three identical vases available to be purchased.
Buyer 1 is willing to pay $30 for one, buyer 2 is willing to pay $25 for one, and buyer 3 is willing to pay $20 for one.
The price is $25.
Buyer 1 and buyer 2 will purchase the vase as they are willing to pay more than the price. Buyer 3 is not willing to pay the price.
So, only two vases will be sold.
The consumer surplus is the difference between the price a consumer is willing to pa and the price he actually pays.
The consumer surplus
= ($30-$25) + ($25-$25)
= $5 + $0
= $5