go. Let's suppose we have five consumers. Being the creative people that we are, let's call them Consumers A, B, C, D, and E, respectively. Let's also suppose that we have some "inside" information on each consumer. Literally. We are going to imagine that we could look deep into the heart and soul of each and know exactly how much that consumer would be willing to pay for one more T-shirt. Not how much the consumer thinks he will have to pay it. Not how much it's "worth" to them according to some nebulous standard of worth. When we say "willing to pay" we mean the maximum amount of their own money they would really be willing to give up in order to consume the good. If we think back to our auction example, each consumer's willingness to pay value represents the maximum amount they would be willing to bid in order to win that T-shirt in an auction. In other words, we are going to imagine that we know how much happiness--as measured by willingness to pay--an extra T-shirt would generate for each of our consumers. Of course, in real life this information is known only by the consumer. Nobody can know just how much somebody else is willing to pay for something. But we are going to pretend we know this information in order to see something we otherwise would miss. The table below reports each consumer's personal willingness to pay value for the T-shirt. Willingness to Pay