Mary is willing to pay $50 for a Christmas tree,John is willing to pay $45 and Jeff is willing to pay $40.The price of a tree is $40.The total consumer surplus for Mary,John and Jeff taken together is

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what consumers are willing to pay and what they actually pay. Mary's surplus is $10 ($50 - $40), John's is $5 ($45 - $40), and Jeff's is $0 ($40 - $40), totaling $15.

Mary Is Willing to Pay $50 for a Christmas Tree,John