Question

Determine the amount of consumer surplus generated in the following situation. After soccer practice, Stacey is willing to pay $2 for a bottle of mineral water. The 7­Eleven sells mineral water for $2.25 per bottle, so she declines to purchase it. a. The Consumer surplus of 5-10=$5 b. ... Determine the amount of producer surplus generated in each of the following situations.

Answer 1

Answer:

The answer is: There was no consumer surplus in this situation.

Explanation:

consumer surplus refers to the difference between the maximum amount a consumer is willing to pay for a good or service and the actual price of the good or service.

In this case there was no consumer surplus, since Stacey was willing to pay only $2 for a bottle of mineral water and its price was $2.25, so she didn't buy it.