Wendy is willing to pay $50 for a concert ticket and Bruce would like to receive $25. If the market price is $40 for this transaction, then the total surplus would be $15.

Question

Quizplus · Accepted Answer

The total surplus is calculated as the difference between what the buyer is willing to pay and what the seller is willing to accept. Wendy is willing to pay $50, and Bruce wants $25. The total surplus is $50 - $25 = $25, not $15.

Wendy Is Willing to Pay $50 for a Concert Ticket