Faisal is gathering items to donate to a local charity thrift shop, including an old backpack. As he takes the items out, his suitemate Kendrick asks if he could have the backpack. Kendrick offers Faisal one of his energy drinks (worth $6) in exchange, which Faisal happily accepts. Faisal has achieved a producer surplus of

Question

Quizplus · Accepted Answer

Producer surplus is the difference between what a producer is willing to accept for a good versus what they actually receive. Faisal was willing to donate the backpack (accept $0), but instead received an energy drink worth $6, thus his producer surplus is $6.

Faisal Is Gathering Items to Donate to a Local Charity