Question

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. What is the gain in total consumer surplus when the price decreases from $59 to $40?

Answer 1

Answer:

Total consumer surplus is $60

Explanation:

The consumer surplus is the gap between the maximum price that the consumer is willing to pay and the price the consumer actually pay.

In this case,

Vonda is willing to pay $90 and he actually pay $40

Consumer Surplus is $50

Aleiyah is willing to pay $50 ​ and he actually pay $40

Consumer Surplus is $10

To get Total consumer surplus,  we must add all

Total consumer surplus=$50+$10=$60