Question

in the market for a particular pair of shoes, geri is willing to pay $65 for a pair, while jane is willing to pay $85 for a pair. the actual price that each has to pay for a pair of these shoes is $65. what is the total amount of the two women's combined consumer surplus?

Answer 1

20$

Step-by-step explanation:

The consumer surplus for Geri is the difference between what she is willing to pay and the actual price she pays, which is:

CS_Geri = 65 - 65 = 0

The consumer surplus for Jane is the difference between what she is willing to pay and the actual price she pays, which is:

CS_Jane = 85 - 65 = 20

Therefore, the total consumer surplus for both women combined is:

CS_total = CS_Geri + CS_Jane = 0 + 20 = 20

So the combined consumer surplus for Geri and Jane is $20.