Mary has an old house built in 1950 that she would be willing to sell for $100,000.If someone offers to buy her house for $110,000,Mary's producer surplus would be equal to

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price at which the producer is willing to sell the product and the price at which it is actually sold. In this case, Mary is willing to sell her house for $100,000, but if someone offers to buy it for $110,000, her producer surplus would be $10,000 ($110,000 - $100,000). Therefore, the best choice is B.

Mary Has an Old House Built in 1950 That She