Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither.ConsumerProducerSurplusSurplusNeitherStatementEven though I was willing to pay up to $120 for a used laptop, I bought a used laptop for only $115.I sold a watch for $61, even though I was willing to go as low as $55 in order to sell it.Even though I was willing to pay up to $67 for a used textbook and even though the seller was willing togo as low as $63 in order to sell it, we couldn't reach a deal because the government imposed a price floorof $76 on the sale of textbooks.O O

Consumer surplus(CS) refers to the ‘willingness to pay’ of consumers minus the amount they actually…

Answered: dentify whether each of the following…

dentify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 5P

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Question

Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither.
Consumer
Producer
Surplus
Surplus
Neither
Statement
Even though I was willing to pay up to $120 for a used laptop, I bought a used laptop for only $115.
I sold a watch for $61, even though I was willing to go as low as $55 in order to sell it.
Even though I was willing to pay up to $67 for a used textbook and even though the seller was willing to
go as low as $63 in order to sell it, we couldn't reach a deal because the government imposed a price floor
of $76 on the sale of textbooks.
O O

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