If the minimum that the Smith family would be willing to sell their house for is $185,000, but they in fact sell it for $210,000, they will receive:
A) producer surplus in the amount of $210,000.
B) producer surplus in the amount of $25,000.
C) consumer surplus in the amount of $210,000.
D) consumer surplus in the amount of $25,000.

Question

Quizplus · Accepted Answer

Producer surplus is the difference between the actual selling price and the minimum price the seller is willing to accept. Here, it is $210,000 - $185,000 = $25,000.

If the Minimum That the Smith Family Would Be Willing