Jason purchased a new printer for $150 although he was willing to pay $175.The minimum price acceptable by the seller,Jasmine,was $145.The results of this transaction are a consumer surplus of:

Question

Quizplus · Accepted Answer

Consumer surplus is the difference between what the consumer is willing to pay and what they actually pay. In this case, Jason was willing to pay $175 but only paid $150, so his consumer surplus is $25.
Producer surplus is the difference between the price the seller receives and the minimum price they are willing to accept. In this case, Jasmine received $150 but was willing to accept $145, so her producer surplus is $5.
Therefore, the total surplus in this transaction is $25 (consumer surplus) + $5 (producer surplus) = $30. Option B is the only possible answer that matches this calculation.

Jason Purchased a New Printer for $150 Although He Was