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Fei(f), Morgan(m), and Lakesha(l) are all in the market for the new Levi's jeans. The marginal benefit for each pair of jeans for each of them is provided in the table
Fei(f), Morgan(m), and Lakesha(l) are all in the market for the new Levi's jeans. The marginal benefit for each pair of jeans for each of them is provided in the table _________________________________________________________
Quantity f m l
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1 $85 $40 $90
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2 $60 $32 $75
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3 $32 $24 $55
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4 $20 $16 $32
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5 $15 $8 $25
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How much total consumenr surpluss will Fei have ay the price of $32
a. $3
b. $5
c. $7
d. $9
Answer:Using the marginal benefits provided in the table, Fei's total consumer surplus for the jeans at a market price of $32 is $81. None of the multiple-choice options a, b, c, or d correctly reflect this total surplus.Explanation:The student's question pertains to calculating the consumer surplus for Fei for purchasing jeans at a given market price. Consumer surplus is the difference between what consumers are willing to pay for a good or service (their marginal benefit) and what they actually pay. In this question, we compare the marginal benefits as indicated by Fei for each pair with the actual market price she has to pay, summing the surplus for each of the pairs she buys up to her willingness to pay. To calculate the total consumer surplus for Fei at a price of $32, we'll look at the marginal benefits Fei receives for the first three pairs of jeans, as the price for the fourth pair and beyond is less than or equal to $32, which means she has no surplus for those.1st pair: $85 (MB) - $32 (Price) = $53 surplus2nd pair: $60 (MB) - $32 (Price) = $28 surplus3rd pair: $32 (MB) - $32 (Price) = $0 surplusTotal consumer surplus for Fei at the price of $32 is $53 + $28 = $81. However, this option is not provided in the question, so it appears there is a discrepancy between the provided options and the calculated answer. To address the question directly, none of the provided answer choices (a. $3, b. $5, c. $7, d. $9) are correct based on the calculation using the provided table....