Question

A local store was having a sale on textbooks, so I bought a used textbook for my brother.

Answer 1

Solution:

A local store was having a sale on textbooks, so I bought a used textbook for my brother.

Above statement is an example of neither means it doesn’t belongs to consumer surplus as well producer surplus as no monetary value is mentioned here.

As Consumer surplus can be defined as the difference between the person willingness to pay and the actual amount he is paying and producer surplus is the difference between the lowest amount the person is willing to receive for his product and the actual amount he is receiving