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28 July, 01:48

Jennifer, Tony, and Becky are students in a history class. All three plan on selling their textbooks back at the end of the year. The bookstore will buy each textbook back for $95. Jennifer's willingness to sell is $87. Tony wants to get at least $45 for his book, and Becky wants to sell her book back for $105. Place each student's producer surplus in order, from highest to least.

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  1. 28 July, 03:36
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    Highest to Lowest Producer surplus:

    For Tony = $95 - $45 = $50

    For Jennifer = $95 - $87 = $8

    For Becky = $95 - $105 = - $10

    Explanation:

    Producer Surplus : The producer surplus shows a difference between buying price and willingness to sell price

    In mathematically,

    Producer surplus = Buying price - willingness to sell price

    For Tony = $95 - $45 = $50

    For Jennifer = $95 - $87 = $8

    For Becky = $95 - $105 = - $10

    The above categorization of product surplus shows a highest to least product surplus of each student.
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