Patricia decides to buy a pair of boots for $$90\mathrm{.}00.$ She was willing to pay $$115\mathrm{.}00.$ When her friend Cecilia sees the boots, she loves them and thinks they are worth $$195\mathrm{.}00.$ So she offers Patricia $$140\mathrm{.}00$ for the boots, and Patricia accepts. Patricia and Cecilia are both thrilled with the exchange.

The total surplus received by both Patricia and Cecilia is $.

$.$

 

Suppose that Patricia purchased the boots from Marie$$s Boutique. Marie and other boutique owners in town are upset that customers like Patricia buy boots at their stores, and then resell them for a higher price. Marie and the other owners convince the city government to pass a law preventing such resale. Assuming the law is successful, how much surplus is lost if Patricia cannot sell the boots to Cecilia?  

Answer rating: 100% (QA)

1 Total Surplus Received by Patricia and Cecilia Total Surplus is the sum of Consumer Surplus and Pr... View the full answer