Leroy wants to buy a new bike. He is able to find someone selling a bike for $95. He was willing to pay $105 for it so he makes the purchase. After two years of use, Leroy decides to sell the bike again to his neighbor for $100. The neighbor was willing to pay $120 for the bike so he buys it. Was is the total surplus? $30 O $10 O $20 $25

The consumer surplus(CS) is the difference between the amount(A) that a consumer(C) is willing to…

Answered: Leroy wants to buy a new bike. He is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN: 9780190931919

Author: NEWNAN

Publisher: Oxford University Press

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Question

Microeconomics

Leroy wants to buy a new bike. He is able to find someone selling a bike for $95. He
was willing to pay $105 for it so he makes the purchase. After two years of use, Leroy
decides to sell the bike again to his neighbor for $100. The neighbor was willing to pay
$120 for the bike so he buys it. Was is the total surplus?
$30
O $10
O $20
$25

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