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sweet-ann [11.9K]
3 years ago
7

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?
Social Studies
1 answer:
Lyrx [107]3 years ago
6 0

Answer: The answer is $2.5

Explanation:

First donut surplus

$2- $1= $1

Second donut surplus

$1.80 -$ 1= $0.80

Third donut surplus

$1.50 -$ 1= $0.50

Fourth donut surplus

$1.20 - $1= $0.20

Total surplus = $1 + $0.80 +$0.50 + $0.20 = $2.5

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