- Messages
- 180
- Reaction score
- 63
- Points
- 38
My bad, it should be D.
My sir explained and told me that I didn't read the question carefully.
It says that the Consumer surplus should be equal, if you see the values of D, you'd notice that Jane is $6 and therefore getting a consumer surplus of $4. Sara pays $4 and therefore gets Consumer surplus of $4 and lastly, Yasmin pays $2 and gets consumer surplus of $4.
I hope you get it now. I'll explain the farmer's income one with the help of diagram shortly.
Thanks man! It was so straight forward but I didnt see it the first time :/ you opened my eyes haha! You in AS too?