Priscilla is willing to pay $65 for a new pair of shoes.Pandora is willing to pay $50 for the same shoes.The shoes have a price of $45.What is the total consumer surplus for Priscilla and Pandora?

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay for a good or service and what the consumer actually pays. 
For Priscilla, her consumer surplus is $65 - $45 = $20. 
For Pandora, her consumer surplus is $50 - $45 = $5. 
The total consumer surplus is the sum of the individual consumer surpluses: $20 + $5 = $25. 
Therefore, the best choice is option D.

Priscilla Is Willing to Pay $65 for a New Pair