Consider the Market for Socks

question 135

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 surplus (i.e.,producer and consumer surplus) in this market?

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

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Definitions:

Whisky Consumption

The action or practice of drinking whisky, which can be analyzed for its economic impacts, trends, and consumer preferences.

Gallons

A unit of volume measurement used primarily in the United States, defined as 231 cubic inches or approximately 3.785 liters.

Ambrosia

In classical mythology, the food of the gods, which conferred immortality; in general usage, something very pleasing to taste or smell.

Plowshares

Metal blades fitted to a plow, used in farming to cut through the soil.