Asked by Elizabeth Steinke on Jul 12, 2024
Verified
Vonda and Aleiyah are shopping together at the mall for new jeans.Vonda is willing to pay $90 and Aleiyah is willing to pay $50 for a pair of jeans.If the price of jeans is $59,how much total consumer surplus is achieved in this market?
A) $0
B) $9
C) $31
D) $40
Consumer Surplus
The difference between the maximum price a consumer is willing to pay for a product and the actual price they pay.
Total Consumer Surplus
The sum of the individual consumer surpluses of all the buyers of a good in a market.
- Review payment willingness data in tables and estimate consumer surplus for entities and the broader market.
- Assess the total consumer surplus in dealings involving several buyers with various readiness to pay.
Verified Answer
WS
Waqar SaleemJul 14, 2024
Final Answer :
C
Explanation :
Vonda's consumer surplus is $90 - $59 = $31 (since Aleiyah is not willing to pay $59, she does not buy the jeans, thus her consumer surplus is $0). Total consumer surplus is $31.
Learning Objectives
- Review payment willingness data in tables and estimate consumer surplus for entities and the broader market.
- Assess the total consumer surplus in dealings involving several buyers with various readiness to pay.