Final answer:
Consumer surplus is calculated as the difference between what a consumer is willing to pay and what they actually pay. When Scott's maximum willingness to pay for 4 tickets matches the market price of $40, his consumer surplus is $0, represented by answer choice A.
Step-by-step explanation:
The student's question revolves around calculating consumer surplus based on a demand curve equation given as P = 60 - 5Q, where P is the price and Q is the quantity demanded. At a ticket price of $40, we can solve for the quantity demanded by substituting 40 for P: 40 = 60 - 5Q, which simplifies to Q = 4. To find the consumer surplus, we need to determine the highest price Scott is willing to pay for 4 tickets (which would be when Q = 4), and then subtract the actual price paid. The highest price for 4 tickets is determined by plugging Q=4 into the demand equation, so P = 60 - 5(4), giving us P = 40. But since the price he pays is also $40, there is no difference between what he is willing to pay and what he actually paid, hence the consumer surplus is $0. The consumer surplus is the area above the market price and below the demand curve; since the market price equals Scott's maximum willingness to pay at Q = 4, the area representing surplus is essentially nonexistent.