Question

Mark and rasheed are at the bookstore buying new calculators for the semester. mark is willing to pay $75 and rasheed is willing to pay $100 for a graphing calculator. the price for a calculator at the bookstore is $65. how much is their total consumer surplus?

Answer 1

The correct answer is $45

Mark and Rasheed are at the bookstore buying new calculators for the semester. Mark is willing to pay $75 ( $75 - $65 = $10 ) and  Rasheed is willing to pay $100 ( $100 - $65 = $35 ) for a graphing calculator. The price for a calculator at the bookstore is $65. Their total consumer surplus ( $10 + $35 = $45 )  is $45