At the end of the term, Vicky wants to sell her economics textbook for at least $25, otherwise she would keep it. George is looking to buy a textbook because he's taking the class next term, and he is willing to pay at most $60. If Vicky agrees to sell the textbook to George for $45:

Question

Quizplus · Accepted Answer

George's consumer surplus is the difference between what he is willing to pay ($60) and what he actually pays ($45), which is $15. Vicky's producer surplus is the difference between what she receives ($45) and her minimum acceptable price ($25), which is $20.

At the End of the Term, Vicky Wants to Sell