In the market for a particular pair of shoes, Jena is willing to pay $75 for a pair, while Jane is willing to pay $85 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 girls' combined consumer surplus?
A)$10
B)$30
C)$195
D)$160

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what a consumer is willing to pay and what they actually pay. Jena's consumer surplus is $75 - $65 = $10, and Jane's consumer surplus is $85 - $65 = $20. Combined, their consumer surplus is $10 + $20 = $30.

In the Market for a Particular Pair of Shoes, Jena