City-Mesa-Miramar Continuing Ed. My Institution Open OnDemand a Chapter 4 ? INQU

Question

City-Mesa-Miramar Continuing Ed. My Institution Open OnDemand a Chapter 4 ? INQUIZITIVE Chapter 4: Market Outcomes and Tax Incidence e Page(s) 113-114 1 What are consumer surplus and producer su plus? Jennifer, Tony, and Becky are students in a history class. All three plan on selling their textbooks back at the end of the year. The bookstore will buy each textbook back for $95 Jennifer's willingness to sell is $87. Tony wants to get at least $45 for his book, and Becky wants to sell her book back for $105. Place each student's producer surplus in order, from highest to least. Start by clicking the first item in the sequence or dragging it here Tony Jennifer Becky

Explanation / Answer

Producer Surplus (PS) is the difference between the market price and their willingness to sell.
Tony's PS = (95 - 45) = $50
Jennifer's PS = (95 - 87) = $8
Becky's PS = (95 - 105) = -$10

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