Ask Question
14 June, 23:57

For each of the scenarios, calculate the surplus and indicate if it is a producer surplus or a consumer surplus. Alice is willing to spend $30 on a pair of jeans, and has a coupon for $10 off which she found online. She selects and purchases a $35 pair of jeans which cost $35 pre-discount.

+1
Answers (1)
  1. 15 June, 00:34
    0
    Producer surplus.

    Explanation:

    Producer surplus is the difference between the price of a product they're willing to sell and the price they're gonna actually received. In this case she is willing to spend $30 + $10 coupon and she buys $35 pair of jeans.

    So, she's only paying $30, that means seller is receiving $5 less.

    Therefore, producer surplus is $5.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “For each of the scenarios, calculate the surplus and indicate if it is a producer surplus or a consumer surplus. Alice is willing to spend ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers