Question

Juanita goes to the Hardware Emporium to buy a new circular saw. She is willing to pay $120 for a new saw, but finds saws on sale for $85. Juanita's consumer surplus from the purchase is:

Answer 1

Answer:

The answer is "$35"

Explanation:

In the question, it is defined that, the cost of the new circular saw in $120, and Juanita go to the hardware emporium to buy a circular saw, but that day there was a sale, so she pays $85 to the circular saw.

Juanita is a surplus consumer that's why she purchase the  new circular saw in $85, she will save $35 on that day.

Calculation:

$\ price \ = \ \ 120\\\\\ Discount \ price \ = \ \ 85 \\\\\ Total \ Save \ = \ \ 120 -\ \ 85 \\\\\ Total \ Save \ = \ \ 35$