Consumer and Producer Surplus
Read this article and attempt several practical problems related to consumer and producer surplus by answering the "Try It" quiz questions. Check your answers after you're done.
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.