At the end of the term, Sheilagh wants to sell her economics textbook for at least $30; otherwise, she will keep it. Mikael is looking to buy a textbook because he is taking the class next term and is willing to pay at most $50. If Sheilagh agrees to sell the textbook to Mikael for $45

Question

Quizplus · Accepted Answer

Mikael's consumer surplus is the difference between his maximum willingness to pay ($50) and the price paid ($45), which is $5. Sheilagh's producer surplus is the difference between the price received ($45) and her minimum acceptable price ($30), which is $15.

At the End of the Term, Sheilagh Wants to Sell