Question

Mary saw a bangle bracelet at an accessories shop that she liked and told her friend Susan that the most she would pay for it was ​$38.00. When she found out the price was ​$33.50​, she immediately bought it and gained ​$
nothing in consumer surplus. ​(Enter your response rounded to two decimal places​)
If Mary was to buy another bangle​ bracelet, her additional consumer surplus would
▼
.

Answer 1

Answer:

$4.50 and =$9.00

Explanation:

Consumer surplus is the difference between what a consumer is willing to pay for a good or service and its market price.

i.e., Consumer surplus =  maximum willing price - actual price

Mary is willing to pay ​$38.00, and the market price is $33.50​ .

The consumer surplus = $38 - $33.50

=$4.50

If Mary buys a second bracelet, total consumer surplus would be

=$4.50 x 2

=$9.00