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18 March, 19:23

In the market for a particular pair of shoes, jena is willing to pay $75 for a pair, while jane is willing to pay $85 for a pair. the actual price that each has to pay for a pair of these shoes is $65. what is the total amount of the two girls' combined consumer surplus?

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  1. 18 March, 19:45
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    To solve for the consumer surplus, the formula is;

    Consumer surplus = total value - actual value

    If jena is willing to pay for $75 then = $75 - $65 = $10

    If Jane on the other hand is willing to pay for $85 then = $85 - $65 = $20

    To combine the amount of Jena and Jane to be able to get both of their consumer surplus,

    = $10 + $20 = $30

    The combined amount of consumer surplus of Jena and Jane is $30.
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