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Welfare analysis: Basic concepts Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. Statement Consumer Surplus Producer Surplus Neither A local store was having a sale on laptops, so I bought a used laptop for my brother. I sold a jersey sweater for $32, even though I was willing to go as low as $23 in order to sell it. Even though I was willing to pay up to $46 for a used textbook, I bought a used textbook for only $37.

Respuesta :

Answer:

Neither

Producer surplus

Consumer surplus

Explanation:

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

Consumer surplus = willingness to pay - price of the good

Producer surplus is the difference between the least price a producer is willing to sell his product and the price he sells it.

The first statement is neither producer or consumer surplus because no information was given on the price and willingness to pay of the consumer

A jersey was sold for $32 but the least price he would have been willing to sell it was $23, so, the producer surplus is $9.

The willingness to pay for the textbook was $46 and the price was $37 so the consumer surplus is $9.

I hope my answer helps you