In the market for a particular pair of shoes, Geri is willing to pay $75 for a pair, while Jane is willing to pay $95 for a pair. The actual price that each has to pay for a pair of these shoes is $65. What is the total amount of the two women's combined consumer surplus?
A)$20
B)less than $20
C)$195
D)$10
E)$40

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay. Geri's consumer surplus is $75 - $65 = $10, and Jane's consumer surplus is $95 - $65 = $30. Combined, their consumer surplus is $10 + $30 = $40.

In the Market for a Particular Pair of Shoes, Geri