If a seller's reservation value for a good is $10 and the price at which the good is sold is $15,his producer surplus is ________.
A) $25
B) $150
C) $1.5
D) $5

Question

Quizplus · Accepted Answer

The producer surplus is the difference between the price at which the good is sold and the seller's reservation value. In this case, the producer surplus would be $15 - $10 = $5. Therefore, the answer is D.

If a Seller's Reservation Value for a Good Is $10