Consider the market for socks.The current price of a pair of plain white socks is $5.00.Two consumers,Igor and Samir,are willing to pay $7.25 and $8.00,respectively,for a pair of plain white socks.Two sock manufacturers are willing to sell plain white socks for as little as $4.00 and $4.15 per pair.How much is total consumer surplus in this market?
A) $2.25
B) $3.00
C) $0.75
D) $5.25
E) $15.25
Correct Answer:
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Q1: When the price of a good decreases
Q3: Producer surplus is defined as the
A) difference
Q4: Jung is willing to pay $85 for
Q5: Consumer surplus is the difference between
A) supply
Q6: Priscilla is willing to pay $65 for
Q7: The difference between the willingness to sell
Q8: All else held constant,an increase in the
Q9: Holding all else constant,when the price of
Q10: The difference between the willingness to pay
Q11: When the price of a good increases
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