Patricia decides to buy a pair of boots for 90.00. She was willing to pay 100.00. When her friend Cecilia sees the boots, she loves them and thinks they are worth 185.00. So she offers Patricia 125.00 for the boots, and Patricia accepts. Patricia and Cecilia are both thrilled with the exchange.
Suppose that Patricia purchased the boots from Marie’s Boutique. Marie and other boutique owners in town are upset that customers like Patricia buy boots at their stores, and then resell them for a higher price. Marie and the other owners convince the city government to pass a law preventing such resale. Assuming the law is successful, how much surplus is lost if Patricia cannot sell the boots to Cecilia?  

To understand the surplus that would be lost if Patricia cannot sell the boots to Cecilia, we need to examine the consumer surplus and how it changes under both scenarios (with and without the resale). 

### Key Information:
- Patricia's willingness to pay for the boots: **$100**.
- Actual price Patricia paid for the boots: **$90**.
- Cecilia's willingness to pay for the boots: **$185**.
- Price Cecilia offers to Patricia for the boots: **$125**.

### 1. Scenario 1: Without the law (Resale allowed)
- **Patricia’s Consumer Surplus when purchasing from Marie's Boutique**:
  - Patricia was willing to pay $100 for the boots but bought them for $90.
  - Her surplus from the initial purchase: $ 100 - 90 = \boldsymbol{10} $.
  
- **Patricia’s Surplus from selling to Cecilia**:
  - Patricia sells the boots for $125, and since she paid $90, her gain from the resale is $ 125 - 90 = \boldsymbol{35} $.

  Total surplus for Patricia: $ 10 + 35 = \boldsymbol{45} $.

- **Cecilia’s Consumer Surplus**:
  - Cecilia is willing to pay $185 for the boots, but she only paid $125 to Patricia.
  - Her consumer surplus: $ 185 - 125 = \boldsymbol{60} $.

Thus, **total surplus when resale is allowed**:  
Patricia’s surplus (45) + Cecilia’s surplus (60) = **$105**.

### 2. Scenario 2: With the law (Resale prevented)
In this case, Patricia keeps the boots.

- **Patricia’s Consumer Surplus**:
  - Patricia still gains from her initial purchase, which is $100 (her willingness to pay) minus $90 (the actual price she paid), giving her a surplus of **$10**.

- **Cecilia’s Consumer Surplus**:
  - Cecilia does not obtain the boots, so her surplus is **$0**.

Thus, **total surplus when resale is prevented**:  
Patricia’s surplus (10) + Cecilia’s surplus (0) = **$10**.

### Surplus Lost Due to the Law:
When resale is allowed, the total surplus is $105, but when resale is prevented, the total surplus drops to $10. Thus, the surplus lost due to the law is:

\[
\boldsymbol{105 - 10 = 95}
\]

### Conclusion:
If Patricia cannot sell the boots to Cecilia due to the law, **$95 of surplus is lost**.

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Do you want further details or have any questions?

Here are some related questions to expand your understanding:
1. What is consumer surplus and how is it calculated?
2. How would the surplus change if Cecilia offered $150 instead of $125?
3. What would happen if Marie's Boutique raised the price of the boots to $100?
4. How does a price ceiling affect consumer and producer surplus in this context?
5. What are the economic effects of banning resales on overall market efficiency?

**Tip:** Consumer surplus represents the difference between what a buyer is willing to pay and what they actually pay—it is a measure of the benefit to consumers in the market.

Patricia decides to buy a pair of boots for 90.00. She was willing to pay 100.00. When her friend Cecilia sees the boots, she loves them and thinks they are worth 185.00. So she offers Patricia 125.00 for the boots, and Patricia accepts. Patricia and Cecilia are both thrilled with the exchange. Suppose that Patricia purchased the boots from Marie’s Boutique. Marie and other boutique owners in town are upset that customers like Patricia buy boots at their stores, and then resell them for a higher price. Marie and the other owners convince the city government to pass a law preventing such resale. Assuming the law is successful, how much surplus is lost if Patricia cannot sell the boots to Cecilia?

Explore how to calculate the surplus lost when a resale law prevents Patricia from selling boots to Cecilia. This problem involves consumer surplus, economic efficiency, and surplus maximization concepts, with a step-by-step breakdown. Suitable for high school students in Grades 10-12.

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