Question

Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither.Statement Consumer Surplus Producer Surplus Neither

I sold a jersey sweater for $25, even though I was willing to go as low as $20 in order to sell it.
Even though I was willing to pay up to $32 for a used laptop and even though the seller was willing to go as low as $27 in order to sell it, we couldn't reach a deal because the government imposed a price ceiling of $17 on the sale of laptops.
Even though I was willing to pay up to $48 for a used textbook, I bought a used textbook for only $39.

Answer 1

I sold a jersey sweater for $25, even though I was willing to go as low as $20 in order to sell it.

Supplier surplus. Supplier surplus = price of the good - lowest price a producer is willing to accept for the good = $25 - $20 = $5

Even though I was willing to pay up to $32 for a used laptop and even though the seller was willing to go as low as $27 in order to sell it, we couldn't reach a deal because the government imposed a price ceiling of $17 on the sale of laptops.

Neither, since no transaction was made.

Even though I was willing to pay up to $48 for a used textbook, I bought a used textbook for only $39.

Consumer surplus. Consumer surplus = maximum price a consumer is willing to pay for a good - actual price of the good = $48 - $39 = $9