Blair and Devin see an ad for a 2-bedroom apartment for $700 per month. The apartment has 2 bedrooms: the master bedroom and the other bedroom. Blair is willing to pay $425 per month for the master bedroom or $300 per month for the other bedroom. Devin is willing to pay $350 per month for the master bedroom or $325 per month for the other bedroom.

the master bedroomthe other bedroom
Blair$425$300
Devin$350$325

Which room should each person get, and how much should they pay?

First you want to choose which person gets which room.

PersonValuePaymentSurplusRoom
Blair??
Devin??
Total???
The cost is $700, the total payments is ? + ? = ?, and the total value is + = ?. Blair is paying ? for which they perceive as being worth and Devin is paying ? for which they perceive as being worth . The total payment is ? less than the total perceived value.