Alex and Tyler enjoy the food at a restaurant named China Star. Alex values a meal there at $15 and Tyler values it at $26. If the restaurant charges only $10 a meal, what is Alex and Tyler's joint consumer surplus from a meal at China Star?

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the maximum amount a consumer is willing to pay for a good and the actual amount they pay. In this case, Alex's consumer surplus is $15 - $10 = $5 and Tyler's consumer surplus is $26 - $10 = $16. Therefore, their joint consumer surplus is $5 + $16 = $21. The correct answer is C.

Alex and Tyler Enjoy the Food at a Restaurant Named