Question

Determine where producer is experiencing a producer surplus or consumer surplus, along with the amount of the surplus.

Answer 1

Answer:

Correct Answers:

Alice Scenario:

Consumer Surplus. And the amount is $5

Jeff Scenario:

Consumer Surplus. And the amount is $12

Nicole Scenario:

Producer Surplus. And the amount is $1

Explanation:

The above scenarios shows that both the consumers and the producer experience a varying degree of surpluses. And, also, the amount of the surplus varies from one person to the other person.