Answer:
1) Consumer surplus of $4
2) producer surplus of $2
Explanation:
1) The consumer surplus is the difference between the highest price a consumer is willing to pay and the actual market price of the good or service.
Consumer surplus = Maximum price willing to pay - actual price
Consumer surplus = $9 - $5
Consumer surplus = $4
2) The producer surplus is the difference between the market price and the lowest price a producer would be willing to accept.
Producer surplus = Total revenue - total cost.
Total revenue is the revenue received from selling.
Producer surplus = $5 - $3
Producer surplus = $2
Therefore, the results of the transaction between Jonathan and Jennifer are a consumer surplus of $4 and a producer surplus of $2.
