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s344n2d4d5 [400]
3 years ago
15

Andrew paid $30 to buy a potato cannon, a cylinder that shoots potatoes hundreds of feet. He was willing to pay $45. When Andrew

's friend Nick learns that Andrew bought a potato cannon, he asks Andrew if he will sell it for $60, and Andrew agrees, since he would have sold it for $45. Nick is thrilled, since he would have paid Andrew up to $80 for the cannon. Andrew is also delighted. What is the total surplus generated from Andrew’s sale to Nick?
Business
1 answer:
irinina [24]3 years ago
3 0

Answer:

The total surplus from Andrew's sale to Nick is $35.

Explanation:

The total surplus is the sum of producer surplus and consumer surplus.

The consumer surplus is the difference between the maximum price a consumer is willing to pay for a product and the price he/she actually has to pay.

While producer surplus is the difference between the minimum price a producer is willing to accept for a product and the price he/she actually gets.

Consumer surplus for Nick

= $80 - $60

= $20

Producer surplus for Andrew

= $60 - $45

= $15

Total surplus from generated from Andrew's sale to Nick

= $20 + $15

= $35

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The person is a consumer as a consumer is the economic term for an entity that acquires goods and services whether freely or otherwise to use them for something be it personal or business in nature.

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3 years ago
The Blue Bird Bus Company in Georgia sells buses to the South African government. To South Africa, these buses are an example of
Stolb23 [73]

Answer:

Imports.

Explanation:

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7 0
3 years ago
Your store has average sales of $1,680 per day. Its shrinkage rate is 3%. What will its losses be for an entire year?
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Answer:

$18,396

Explanation:

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