Andy’s willingness to sell each sofa is $2200, brenda’s willingness to sell each sofa is $2500, sofa is $3200 and david’s willingness to sell each sofa is $4000. Total producer surplus =1300
$1,300 - Because their readiness to sell price is less than the real selling price, only Andy and Brenda will be willing to sell their sofa at the market price of $3,000. In calculating producer surplus, consider: market price minus seller reluctance
Producer surplus for Andy: 3000 - 2200 = 800
Brenda 3000 - 2500 = 500 is the producer surplus.
800 + 500 = 1300 in total producer surplus
A cushioned piece of furniture with several seating options is referred to as a couch, also known as a sofa, settee, or chesterfield.
Even though a sofa is typically used for seating, it can also be used for sleeping.
[3] The family room, living room, den, or lounge are typically where sofa are placed in homes.
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