Violet and Allegra are shopping together at the Mall of America for a new pair of shoes. Violet's marginal benefit of buying the shoes is $90, and Allegra's marginal benefit is $50 for a pair of shoes. If the price of shoes is $59, how much total consumer surplus do they receive?
A)$0
B)$9
C)$31
D)$40

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum price that a consumer is willing to pay and the actual price they pay. In this case, Violet's willingness to pay is greater than the price, which means she receives a consumer surplus of $31 ($90 - $59). Allegra's willingness to pay is also greater than the price, which means she receives a consumer surplus of $9 ($50 - $59). Therefore, the total consumer surplus for both of them is $31 + $9 = $40. The correct answer is D.

Violet and Allegra Are Shopping Together at the Mall of America