Lauren and Katy each bought a new bike lock for $20. Both Lauren and Katy would have paid $25 for the lock. Katy's consumer surplus equalled

Name: Lauren and Katy each bought a new bike lock for $20. Both Lauren and Katy would have paid $25 for the lock. Katy's consumer surplus equalled
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Since both Lauren and Katy would have paid $25 but only paid $20, the consumer surplus for each person is $5. Therefore, Katy's consumer surplus is $5.

Lauren and Katy Each Bought a New Bike Lock for $20