Costa and Soula sell lemonade on the corner for $0.10 per glass. Their producer surplus is $0.06 per glass. Their willingness to sell is:

Name: Costa and Soula sell lemonade on the corner for $0.10 per glass. Their producer surplus is $0.06 per glass. Their willingness to sell is:
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Producer surplus is the difference between the price received and the willingness to sell. If the producer surplus is $0.06 and the price is $0.10, their willingness to sell is $0.10 - $0.06 = $0.04.

Costa and Soula Sell Lemonade on the Corner for $0