While Steve is cleaning out his garage, he finds an old surfboard that he no longer needs. As he walks to the dumpster to throw it out, his neighbor John asks if he could have it. John offers Steve a 6-pack of beer (worth $10) in exchange, which Steve happily accepts. Steve has achieved a producer surplus of:
A) $0, since he was just going to throw out the board.
B) $10, the value of the beer he received.
C) $5, because Steve and John benefited equally from the $10 transaction.
D) $50, because that's what the surfboard was likely worth.
Correct Answer:
Verified
Q9: The gap between the demand curve and
Q10: In the graph, if a price ceiling
Q11: An effective price ceiling occurs at a
Q12: Public goods tend to be _ because
Q14: Jackie finds a pair of jeans that
Q15: In the graph, if a price floor
Q16: At the end of the term, Vicky
Q17: Getting a flu shot reduces the chances
Q18: Which of the following price floors for
Q248: Producer surplus is the difference between the
A)
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents