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Gab mows neighborhood lawns for extra money. Suppose that he would be willing to mow one lawn for $10, a second lawn for $15, and
Gab mows neighborhood lawns for extra money. Suppose that he would be willing to mow one lawn for $10, a second lawn for $15, and a third lawn for $24. Also suppose that three neighbors are interested in having their lawns mowed. Mr. James would be willing to pay $32 to have his lawn mowed, Mr. Wyatt would be willing to pay $28, and Mr. Smith would be willing to pay $24.
If Gab offers to mow lawns for $24 each, what he will be his producer surplus?
Considering Mr. James, Mr. Wyatt and Mr. Smith together, what will be their consumer surplus?
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