Jennifer buys a piece of costume jewelry for $33 for which she was willing to pay $42.The minimum acceptable price to the seller,Nathan,was $30.Jennifer experiences a:

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between the highest price a consumer is willing to pay and the actual price paid. In this case, Jennifer was willing to pay $42 but paid only $33, so her consumer surplus is $9. 
Producer surplus is the difference between the actual price received and the minimum acceptable price. In this case, Nathan received $33, which is $3 more than his minimum acceptable price of $30. Therefore, his producer surplus is $3. 
Option C is the correct choice since it correctly identifies Jennifer's consumer surplus as $9 and Nathan's producer surplus as $3.

Jennifer Buys a Piece of Costume Jewelry for $33 for Which