Suppose Lauren,Leslie,and Lyndsay all purchase bulletin boards for their rooms for $15 each.Lauren's willingness to pay was $35,Leslie's willingness to pay was $25,and Lyndsay's willingness to pay was $30.Rank their consumer surplus from high to low.

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the willingness to pay and the actual price paid for a good or service. So, Lauren's consumer surplus would be $20 ($35 - $15), Lyndsay's consumer surplus would be $15 ($30 - $15), and Leslie's consumer surplus would be $10 ($25 - $15). Therefore, the ranking of consumer surplus from high to low would be Lauren, Lyndsay, and Leslie.

Suppose Lauren,Leslie,and Lyndsay All Purchase Bulletin Boards for Their Rooms