If Jacqueline is willing to accept $1 for a cupcake and Jameson is willing to pay $3 for a cupcake, the cooperative surplus will ________ if the negotiated price is $1.50 as opposed to $2.00.

Question

Quizplus · Accepted Answer

The cooperative surplus is the difference between what the buyer is willing to pay and what the seller is willing to accept. In both pricing scenarios ($1.50 and $2.00), the surplus remains the same because the total amount that Jameson is willing to pay over Jacqueline's acceptance price does not change.

If Jacqueline Is Willing to Accept $1 for a Cupcake