The price of a carton of eggs is $2, and 100 cartons are sold. The consumer surplus is $80, and total surplus equals $150. What is the producer surplus?
A)$200
B)$120
C)$70
D)$50

Question

Quizplus · Accepted Answer

Total surplus can be calculated as the sum of consumer surplus and producer surplus. Therefore, producer surplus is equal to total surplus minus consumer surplus, which is:

Producer Surplus = Total Surplus - Consumer Surplus
Producer Surplus = $150 - $80
Producer Surplus = $70

Therefore, the answer is (C) $70.

The Price of a Carton of Eggs Is $2, and 100