Question

Leah decides to buy a used Dolce & Gabbana dress for $85.00. She was willing to pay $120.00. When her friend Becky sees the dress, she loves it and thinks it worth $195.00. So she offers Leah $150.00 for the dress, and Leah accepts. Leah and Becky are both thrilled with the exchange.

The total surplus received by both Leah and Becky is $

Suppose that Leah purchased the dress from Marie’s Boutique. Marie and other boutique owners in town are upset that customers like Leah buy dresses at their stores, and then resell them for a higher price. Marie and the other owners convince the city government to pass a law preventing such resale. Assuming the law is successful, how much surplus is lost if Leah cannot sell the dress to Becky? $

Answer 1

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