Question

Suppose Lauren, Leslie and Lydia all purchase bulletin boards for their rooms for $15 each. Lauren's willingness to pay was $35, Leslie's willingness to pay was $25, and Lydia's willingness to pay was $30. Total consumer surplus for these three would be

a. $15.
b. $30.
c. $45.
d. $90.

Answer 1

Total consumer surplus = $45

so correct option is c. $45

Step-by-step explanation:

given data

purchase bulletin boards = $15

Lauren = $35

Leslie = $25

Lydia = $30

to find out

Total consumer surplus

solution

we know that consumer surplus is the difference between the price the consumer expected to pay

and the price they are actually paying

so

Lauren's surplus = $35 - $15 = $20

Leslie's = $25 - $15 = $10

Lydia's = $30 - $15 = $15

so

Total consumer surplus = $20 + $10 +$15

Total consumer surplus = $45

so correct option is c. $45

Total consumer surplus will be $45. The answer is "C".