Question

6 on eBay, you find a rare album for sale, and place a maximum bid of $100. At the end of the auction, you win the album at a price of 560. The difference between the $100 that you were willing to pay and the 560 you actually paid is called Consumer profit marginal savings consumer surplus welfare generation You currently have submissions for this question. Only 1 submission are allowed. You can make more submissions for this question. Producer plus is represented by the area above the demand curve and below the price below the demand curve and above the price above the wooly curved below the price below the ly curve and above the price u rreth com e more for this curso Only for this question one Suppose you bought your textbook for $75 from someone who dropped the course early in the semester you would have been waiting to pay up to $100 (the price at the bookstore, while the seller's minimum price was the bookstore's buyback price then this information Comme surplus is $175 Producer wurplus is 530 Consumer surplus 100 Producer surplus is 530 Consumer surplus 57 Producer surplus is sas E- | à à a ) là 1 0 7 e p 1 caps lock

Answer 1

6. (c) Consumer Surplus

Explanation: Consumer surplus refers to the difference of the price that the consumer has paid and the price that the consumer is willing to pay. Int the present case, the consumer is willing to pay $100 for the album but got the album by paying $60 only. Therefore, The difference of $40 ($100 - $60) will be termed as consumer surplus

7. (c) Above the supply curve and below the price

Explanation: The supply curve determines the quantity a producer is willing to supply at different prices. At price above the market price, the producer will be willing to sell all his produce. However, the producer will not be willing to sell all its produce above the supply curve but below the market price. Such a scenario (or area of the graph) will be referred as producer surplus.

8. (d) Consumer Surplus is $25, Producer surplus is $45

Explanation:

The equilibrium price is the price at which the goods were bought i.e. $75

The customer was willing to pay $100

Therefore, Consumer surplus is $25 (i.e. $100 - $75)

The supplier minimum price was $30

Therefore, producer surplus is $45 (i.e. $75 - $30)