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FrozenT [24]
4 years ago
5

Tim mows neighborhood lawns for extra money. Suppose that he would be willing to mow one lawn for ​$12​, a second lawn for ​$15​

, and a third lawn for ​$23. Also suppose that three neighbors are interested in having their lawns mowed. Mrs. Jones would be willing to pay ​$30 to have her lawn​ mowed, Mr. Wilson would be willing to pay ​$26​, and Ms. Smith would be willing to pay ​$23.
Considering Mrs.​ Jones, Mr.​ Wilson, and Ms. Smith​ together, what will be their consumer​ surplus?  ​
Mathematics
1 answer:
allsm [11]4 years ago
3 0
$29 will be their consumer surplus.

Consumer surplus is the difference between how much a consumer is willing to pay and how much a consumer actually does pay.

$12.00 + $15.00 + $23.00 = $50.00 (How much the consumer actually pays)

$23.00 + $26.00 + $30.00 = $79.00 (How much the consumer is willing to pay)

$79.00 - $50.00 = $29.00 (Consumer surplus)
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