Question

Suppose Kendra sells cheesecakes for $10 each and would be willing to sell cheesecakes for $8 each. If Austin buys five and he is willing to pay $80 in total, how much is his total consumer surplus

Answer 1

40$

Step-by-step explanation:

Each cheesecake is being sold for 8$, Austin is buying 5 for 80$

5 cheesecakes ×8$ = 40

Austin is giving 80$ for the 5 cheesecakes which total 40$ ( 80-40) = 40$ is his consumer surplus.