Consider the Market for Socks

question 136

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:

Convergent Evolution

The process by which unrelated organisms independently evolve similarities when adapting to similar environments.

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Aquatic mammals known for their high intelligence, complex behaviors, and acrobatic abilities, belonging to the family Delphinidae.

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A class of warm-blooded vertebrate animals characterized by the presence of mammary glands, which females use to feed their young.