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Consider the Market for Socks

Question 3

Multiple Choice

Consider the market for socks.The current price of a pair of plain white socks is $5.00.Two consumers,Jeff and Samir,are willing to pay $7.25 and $8.00,respectively,for a pair of plain white socks.Two sock manufacturers are willing to sell plain white socks for as little as $4.00 and $4.15 per pair.What is the total producer surplus in this market?


A) $0.15
B) $8.15
C) $0.85
D) $1.00
E) $1.85

Correct Answer:

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