Scenario 8-1
Assume that Kierra cleans Cate's house weekly for $100.Cate would be willing to pay as much as $125 weekly to have her house cleaned.Kierra's opportunity cost is $80.
-Refer to Scenario 8-1.If Kierra cleans Cate's house,what is the consumer surplus

Question

Quizplus · Accepted Answer

The maximum amount that Cate is willing to pay is $125, but Kierra is charging only $100. Therefore, Cate gets a consumer surplus of $25 ($125 - $100 = $25).

Scenario 8-1 Assume That Kierra Cleans Cate's House Weekly for $100.Cate Would