Question

Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus,...

Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither.

Statement Consumer Surplus Producer Surplus Neither
I sold a used laptop for $149, even though I was willing to go as low as $140 in order to sell it.
I sold a watch for $59 on eBay last week. This week, someone offered me $145 for it.
Even though I was willing to pay up to $46 for a jersey sweater, I bought a jersey sweater for only $39.
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Answer #1

The consumer surplus is the difference between the willingness to pay for a commodity for a consumer and the amount the consumer is actually paid for the goods and services.

The producer surplus is the difference between the producer willing and able to supply in the economy and what the what they actually receive for the goods produced.

The second one is neither a producer or consumer surplus, that represents a offer to the producer and he had already sold that item.

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