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Jane is willing to pay $9 for her first steak per month and $1 less for each successive steak per month ($8 for the second, $7 for the third, and so on)

Economics

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Jane is willing to pay $9 for her first steak per month and $1 less for each successive steak per month ($8 for the second, $7 for the third, and so on). She is willing to pay $25 for the first pizza of the month, and $5 less for each successive pizza per month ($20 for the second, $15 for the third, and so on). The market price of both steaks and pizza is $5 per unit.

Compute Jane's consumer surplus from each steak and pizza. Show your work and explain all calculations.

Answer: Steak: $12.50/month; Pizza: $50/month.