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14 November, 21:14

Mark and Rasheed are at the bookstore buying new calculators for the semester. Mark is willing to pay $75 and Rasheed is willing to pay $100 for a graphing calculator. The price for a calculator at the bookstore is $65. How much is Mark's individual consumer surplus?

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  1. 14 November, 22:10
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    Mark's individual consumer surplus is $10.

    Explanation:

    Mark and Rasheed are at the bookstore buying new calculators for the semester.

    Mark is willing to pay $75 and Rasheed is willing to pay $100 for a graphing calculator.

    The price for a calculator at the bookstore is $65.

    The consumer surplus is the difference between the maximum price that a consumer is willing to pay and the price he actually has to pay.

    Mark's individual consumer surplus

    = Price mark was willing to pay - Price he actually has to pay

    = $75 - $65

    = $10
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Home » Business » Mark and Rasheed are at the bookstore buying new calculators for the semester. Mark is willing to pay $75 and Rasheed is willing to pay $100 for a graphing calculator. The price for a calculator at the bookstore is $65.
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