Suppose a market has only one seller and only one buyer of a good in the market.The buyer is willing to pay $50 for the good and the seller is willing to accept $15.The market price of the good is determined to be $30.If they trade,the social surplus will be ________.
A) $15
B) $35
C) $45
D) $65

Question

Quizplus · Accepted Answer

The social surplus is the sum of consumer surplus and producer surplus. Consumer surplus is the difference between what the buyer is willing to pay ($50) and the market price ($30), which is $20. Producer surplus is the difference between the market price ($30) and the seller's willingness to accept ($15), which is $15. Adding these together, the social surplus is $35.

Suppose a Market Has Only One Seller and Only One