' surplusFor each of the scenarios, calculate the surplus and indicate if it is a producer surplus ora consumerAlice is willing to spend $30 on a pair of jeans, and has a coupon for $10 off which she found online. She selects andpurchases a $35 pair of jeans which cost $35 pre-discountAlice has aAlice's surplus: $producer surplus.surplusconsumerNicole has a hockey puck from the 2010 Winter Olympic Games and puts it up for sale on eBay. She will only sell the puckif the winning bid is greater than or equal to $500. After bidding closes, the last bid stands at $50oNicole has aNicole's surplus: $producer surplus.consumer surplus Claire is trying to sell her used calculus textbook online. She asks for $150 or best offer, and is willing to sell for anythingover $100. She is able to sell it for $125.Claire has aClaire's surplus: $consumer surplusO producer surplusRoy is wiing to pay $2.50 for a sports drink. He puts $5.00 into the vending machine and pushes the button for the sportsdrink wthout noticing that the price has increased to $2.75 until he counts the change he gets backRoy has aRoy's surplus: $consumer surplusproducer surplus.

Question
Asked Sep 30, 2019
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' surplus
For each of the scenarios, calculate the surplus and indicate if it is a producer surplus or
a consumer
Alice is willing to spend $30 on a pair of jeans, and has a coupon for $10 off which she found online. She selects and
purchases a $35 pair of jeans which cost $35 pre-discount
Alice has a
Alice's surplus: $
producer surplus.
surplus
consumer
Nicole has a hockey puck from the 2010 Winter Olympic Games and puts it up for sale on eBay. She will only sell the puck
if the winning bid is greater than or equal to $500. After bidding closes, the last bid stands at $50o
Nicole has a
Nicole's surplus: $
producer surplus.
consumer surplus
help_outline

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' surplus For each of the scenarios, calculate the surplus and indicate if it is a producer surplus or a consumer Alice is willing to spend $30 on a pair of jeans, and has a coupon for $10 off which she found online. She selects and purchases a $35 pair of jeans which cost $35 pre-discount Alice has a Alice's surplus: $ producer surplus. surplus consumer Nicole has a hockey puck from the 2010 Winter Olympic Games and puts it up for sale on eBay. She will only sell the puck if the winning bid is greater than or equal to $500. After bidding closes, the last bid stands at $50o Nicole has a Nicole's surplus: $ producer surplus. consumer surplus

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Claire is trying to sell her used calculus textbook online. She asks for $150 or best offer, and is willing to sell for anything
over $100. She is able to sell it for $125.
Claire has a
Claire's surplus: $
consumer surplus
O producer surplus
Roy is wiing to pay $2.50 for a sports drink. He puts $5.00 into the vending machine and pushes the button for the sports
drink wthout noticing that the price has increased to $2.75 until he counts the change he gets back
Roy has a
Roy's surplus: $
consumer surplus
producer surplus.
help_outline

Image Transcriptionclose

Claire is trying to sell her used calculus textbook online. She asks for $150 or best offer, and is willing to sell for anything over $100. She is able to sell it for $125. Claire has a Claire's surplus: $ consumer surplus O producer surplus Roy is wiing to pay $2.50 for a sports drink. He puts $5.00 into the vending machine and pushes the button for the sports drink wthout noticing that the price has increased to $2.75 until he counts the change he gets back Roy has a Roy's surplus: $ consumer surplus producer surplus.

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Expert Answer

Step 1

The formula of Consumer Surplus = Maximum Price willing to pay – Actual Market price

Producer Surplus= Price – Willingness to Pay

Step 2

1)  Alice is a consumer who is willing to purchase jeans, and consumer surplus would be the maximum amount, Alice would be willing to pay in here.

 Alice consumer surplus  would be

=Consumer surplus = Willingness to pay - (Actual market price)

Putting Values

= $ 40 ( $30 + $ 10) - $ 35.

Hence, the consumer surplus is at $ 5.

Step 3

2) Claire is willing to sell her used calculus textbook online and hence she becomes a producer.

Claire Producer Surplus would ...

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