Amanda buys a ruby for $330 for which she was willing to pay $340.The minimum acceptable price to the seller,Tony,was $140.Amanda experiences a:
A) consumer surplus of $10 and Tony experiences a producer surplus of $190.
B) producer surplus of $200 and Tony experiences a consumer surplus of $10.
C) consumer surplus of $670 and Tony experiences a producer surplus of $200.
D) producer surplus of $10 and Tony experiences a consumer surplus of $190.

Question

Quizplus · Accepted Answer

Amanda's consumer surplus is the difference between what she was willing to pay ($340) and what she actually paid ($330), which is $10. Tony's producer surplus is the difference between the price he received ($330) and his minimum acceptable price ($140), which is $190.

Amanda Buys a Ruby for $330 for Which She Was