Question

Amanda buys a ruby for $330 for which she was willing to pay $340. The minimum acceptable price to the seller, Tony, was $140. Amanda experiences: Group of answer choices a consumer surplus of $10 and Tony experiences a producer surplus of $190. a consumer surplus of $770 and Tony experiences a producer surplus of $480. a producer surplus of $10 and Tony experiences a consumer surplus of $190.

Answer 1

Answer:

a consumer surplus of $10 and Tony experiences a producer surplus of $190.

Explanation:

Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.

Consumer surplus = willingness to pay – price of the good

$340 - $330 = $10

Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product

Producer surplus = price – least price the seller is willing to accept

$330 - $140 = $190