Shakira decided to go on a shopping trip and bought a pair o

Shakira decided to go on a shopping trip and bought a pair of jeans. The jeans had a price tag of $129 95 When she took the jeans to the check out, the jeans ended up being on sale 20% off The sales price was $103 96, $25 99 less than the original price Shakiras consumer surplus from the purchase of the jeans is O A. $103 96 since this is the actual price she pays O B. $129 95 since this is the price she is willing to pay O C. exactly $25 99 since this is the difference between the maximum price she is willing to pay for the jeans and the actual price she pays O D. at least 25 99 since this is the difference between the price she is willing to pay and the actual price she pays, but she could have be willing to pay more than $129 95 for the jeans Click to select your answer sing THE WORLD\'S GRE

Solution

Consumer surplus is the difference between highest price a consumer is willing to pay and the price he is actually paying. Shakira is willing and able to pay $129.95 but she is actually paying $103.96 . Here we don\'t know shakira\'s maximum willingness to pay. She could have been willing to pay more than $129.95 for the jeans. Therefore, the consumer surplus from buying the jeans is at least $25.99.

Answer- option D