Suppose that the price of a donut is $1 each. Lorena is willing to pay $2 for the first donut, Ricky is willing to pay $1.80
for the second donut, Jennifer is willing to pay $1.50 for the third donut, and Betty is willing to pay $1.20 for the fourth donut. In equilibrium, what is the total consumer surplus from the consumption of donuts?
According to Freud, this is Reaction Formation. Another example can serve men that are prejudice against homosexuals are actually making a defense against their own homosexual feelings.
