You currently have a television that you want tosell. You can either pick a price and try to sell it ata yard sale or auction it off on eBay. Which methoddo you think will yield a higher producer surplus?Why?

You currently have a television that you want tosell. You can either pick a price and try to sell it ata yard sale or auction it off on eBay. Which methoddo you think will yield a higher producer surplus?Why?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter7: Market Efficiency And Welfare

Section: Chapter Questions

Problem 4P

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Question

You currently have a television that you want to
sell. You can either pick a price and try to sell it at
a yard sale or auction it off on eBay. Which method
do you think will yield a higher producer surplus?
Why?

Definition Definition Producer’s gain from trade. The producer surplus is the area above the supply curve but below the equilibrium price and up to the equilibrium quantity.

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