Consumer and Producer Surplus
4. TRY IT
If Kay is willing to pay $25,000 for a truck and finds the model he wants for $22,500, Kay has
- a consumer surplus of $2,500.00.
- a producer surplus of $2,500.00.
- a social surplus of $25,000.00.
If Kay is willing to pay $25,000 for a truck and finds the model he wants for $22,500, Kay has