If the hot dog vendors at Yankee Stadium are earning a producer surplus on each hot dog they sell, then baseball fans cannot be gaining any consumer surplus on the hot dogs they buy.

Question

Quizplus · Accepted Answer

Producer surplus and consumer surplus can coexist. Producer surplus occurs when vendors sell at a price higher than their minimum acceptable price, while consumer surplus occurs when buyers pay less than their maximum willingness to pay. Both can happen simultaneously in a market transaction.

If the Hot Dog Vendors at Yankee Stadium Are Earning