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Homework answers / question archive / Priscilla is willing to pay $65 for a new pair of shoes
Priscilla is willing to pay $65 for a new pair of shoes. Pandora is willing to pay $50 for the same shoes. The shoes have a price of $45. What is the total consumer surplus for Priscilla and Pandora?
a. $15
b. $20
c. $5
d. $25
e. $35
Consider the following table:
| Priscilla | Pandora | |
|---|---|---|
| Willingness to pay | $65 | $50 |
| Actual price | $45 | $45 |
| Consumer surplus | $65-$45=$20 | $50-$45=$5 |
Therefore, the total consumer surplus is:
