Kanye West is ready to create his next hit single. He knows that he is willing to pay up to \$3,000 for a funky fresh rhyme, and that he will need a total of ten funky fresh rhymes to create his hit single. After rounding up his best ghostwriters, he summarized the following schedule. If Kanye values all funky-fresh rhymes equally, what is his maximum consumer surplus?

• A. \$6,000
• B. \$12,000
• C. \$24,000
• D. \$30,000

Answer: (A)

Verified step by step guidance

1. Identify Kanye's willingness to pay for each rhyme, which is \$3,000, and note that he needs a total of 10 rhymes.
2. List the ghostwriters in order of increasing price per rhyme: Brian (\$1,000), Consequence (\$2,000), Rhymefest (\$3,000), and Lupe Fiasco (\$6,000).
3. Calculate the total cost of purchasing 10 rhymes by selecting the cheapest options first: 1 rhyme from Brian, 4 rhymes from Consequence, and 5 rhymes from Rhymefest.
4. Determine the total amount Kanye is willing to pay for 10 rhymes by multiplying the number of rhymes (10) by his willingness to pay per rhyme (\$3,000).
5. Calculate the consumer surplus by subtracting the total cost of the rhymes from the total amount Kanye is willing to pay.