Elesha babysits on the weekends for extra money. Suppose that three neighbors with children are interested in paying Elesha to babysit their children. In particular, Dr. and Mrs. Brown would be willing to pay $30 to have Elesha babysit their children, Mrs. Smith would be willing to pay $29 for Elesha’s babysitting services, and Professor and Mrs. Jones would be willing to pay $21 to have her watch their children. If Elesha offers to babysit each set of children for an evening for $21, what will be consumer surplus, considering the three sets of children combined?

Question

Elesha babysits on the weekends for extra money. Suppose that three neighbors with children are interested in paying Elesha to babysit their children. In particular, Dr. and Mrs. Brown would be willing to pay $30 to have Elesha babysit their children, Mrs. Smith would be willing to pay $29 for Elesha’s babysitting services, and Professor and Mrs. Jones would be willing to pay $21 to have her watch their children. If Elesha offers to babysit each set of children for an evening for $21, what will be consumer surplus, considering the three sets of children combined?

Answer 1

(30-21)=9

(29-21)= 8
(21-21)=0
total = $17

Answer 2

Consumer surplus is the difference between what a consumer is willing to pay for a good or service and what they actually have to pay. In this case, we can calculate the consumer surplus for each set of children separately and then combine them.

For Dr. and Mrs. Brown, their consumer surplus would be $30 - $21 = $9.

For Mrs. Smith, her consumer surplus would be $29 - $21 = $8.

For Professor and Mrs. Jones, their consumer surplus would be $21 - $21 = $0.

To calculate the combined consumer surplus, we add up the individual consumer surpluses: $9 + $8 + $0 = $17.

Therefore, the consumer surplus, considering the three sets of children combined, would be $17.

Answer 3

To find the consumer surplus, we need to first calculate the total value that the three sets of children combined are willing to pay for Elesha's babysitting services.

The value Dr. and Mrs. Brown are willing to pay is $30, Mrs. Smith is willing to pay $29, and Professor and Mrs. Jones are willing to pay $21.

Total value = $30 + $29 + $21 = $80

Next, we need to calculate the total amount Elesha charges for the babysitting services. Since she offers to babysit each set of children for $21, the total charge will be $21 x 3 = $63.

Consumer surplus is the difference between the total value and the total charge. So, consumer surplus = Total value - Total charge = $80 - $63 = $17.

Therefore, the consumer surplus, considering the three sets of children combined, is $17.

$18

(30-21)=9

Consumer surplus is the difference between what a consumer is willing to pay for a good or service and what they actually have to pay. In this case, we can calculate the consumer surplus for each set of children separately and then combine them.

To find the consumer surplus, we need to first calculate the total value that the three sets of children combined are willing to pay for Elesha's babysitting services.