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Business, 13.02.2020 18:28 azainababbas

You are thinking about renting a room in a house next year with three of your friends. For each month’s rent, you are willing to pay $580, your first friend is willing to pay $550, your second friend is willing to pay $560, and your third friend is willing to pay $610. The landlord agrees to offer each of you separate leases but will charge you all the same price: $550.You decide this is a good deal, so you and your friends move in. A couple of months later, you learn from someone who knows the landlord that he would have been willing to rent each room for $500 per month. a. What is the amount of producer surplus per month?b. What is the amount of the total consumer surplus per month?c. What is the total amount of surplus each month?

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