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Select the two situations with the highest total surplus.


a. Bonnie buys flowers for $2.25 less than she was willing to pay. She bought them from a seller who would have been willing to accept $3 less that what Bonnie paid.

b. Don wanted to buy a scooter for no more than $5, but was only able to find a producer who would sell for $15.

c. Kevin wanted to spend $50 on a dishwasher and bought one at $45 from a producer who was hoping to receive $40.

d. Jay buys a house for $40,000 less than he was willing to pay. He bought his home from sellers who received $2,000 more than they were willing to sell for.

Respuesta :

Answer:

c. Kevin wanted to spend $50 on a dishwasher and bought one at $45 from a producer who was hoping to receive $40. 

d. Jay buys a house for $40,000 less than he was willing to pay. He bought his home from sellers who received $2,000 more than they were willing to sell for.

Explanation:

Total surplus is the sum of consumer surplus and producer surplus.

Consumer surplus is the difference between the willingness to pay of a consumer and the price he pays for the good.

Producer surplus is the difference between the price a seller sells a good and the least price the seller is willing to sell his good.

In the first option, the total surplus is $2.25 + $3 =$ 5.25

In the second option, there is no consumer surplus.

In the third option, consumer surplus = $50 - $45 = $5

Producer surplus: $45 - $40 = $5

Total surplus = $5 + $5 = $10

In the fourth option, the total surplus is $40,000 + $2000 = $42,000

I hope my answer helps you

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