Consider the Market for Socks

question 24

Multiple Choice

Consider the market for socks.The current price of a pair of plain white socks is $5.00.Two consumers,Jeff and Samir,are willing to pay $7.25 and $8.00,respectively,for a pair of plain white socks.Two sock manufacturers are willing to sell plain white socks for as little as $4.00 and $4.15 per pair.What is the total producer AND consumer surplus (i.e.,social welfare) in this market?

• A) $7.10
• B) $5.25
• C) $1.85
• D) $23.40
• E) $4.50

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Definitions:

Average

The numerical result obtained by dividing the sum of two or more quantities by the number of quantities.

Initialize

The process of setting initial values to variables or starting conditions for an object or application.

Array

A data structure that stores a collection of elements, typically of the same data type, indexed by contiguous integers.

10 X 10

Often connotes a grid or matrix having 10 rows and 10 columns, commonly used in contexts like game design or data representation.