# Consumer and Producer Surplus

## 4. TRY IT

### 4.1. Answer to Try It

• a consumer surplus of $2,500.00. Correct. The difference between what Kay is willing to pay and what he actually pays is his consumer surplus: ($25,000 - $22,500 =$2,500)
• a producer surplus of $2,500.00. Incorrect Kay is not a producer but a consumer and therefore the difference between what Kay is willing to pay and what he actually pays is his consumer surplus. • a social surplus of$25,000.00.
Incorrect Kay is not a producer but a consumer and therefore the difference between what Kay is willing to pay and what he actually pays is his consumer surplus.