Use the following to answer question 100:
Figure: The Market for Hamburgers
-Suppose you pay $10 to see Ryan Reynolds in his next movie.Suppose Mr.Reynolds receives $31 million to work in this movie.This means that:
A) you would have been better off being more self-reliant in the movie market.
B) Reynolds received a producer surplus of $31 million.
C) you received a consumer surplus of $10.
D) you and Reynolds benefited from this transaction.

Question

Use the following to answer question 100:
Figure: The Market for Hamburgers 
-Suppose you pay $10 to see Ryan Reynolds in his next movie.Suppose Mr.Reynolds receives $31 million to work in this movie.This means that:
A) you would have been better off being more self-reliant in the movie market. 
B) Reynolds received a producer surplus of $31 million. 
C) you received a consumer surplus of $10. 
D) you and Reynolds benefited from this transaction.

Quizplus · Accepted Answer

Both you and Reynolds benefit from the transaction. Reynolds receives the producer surplus of $31 million, indicating his willingness to work in the movie for that amount. You pay $10 to see the movie, which is less than the value you place on seeing Ryan Reynolds in the movie, indicating your consumer surplus. Thus, both the producer and consumer benefit from the transaction.

Use the Following to Answer Question 100