Answer:
a. Even though I was willing to pay up to $40 for a jersey sweater, I bought a jersey sweater for only $31.
Consumer Surplus;
= 40 - 31
= $9
When the amount that a consumer is willing to pay for something is more than the amount they actually pay, the difference is the Consumer surplus.
b. I sold a used laptop for $137, even though I was willing to go as low as $130 in order to sell it.
Producer Surplus
= 137 - 130
= $7
When the amount that a producer is willing to sell something for is less than the amount they actually sell it for, the difference is the Producer surplus.
c. I was willing to go as low as $130 in order to sell it A local store was having a sale on watches, so I bought a watch for my brother. Neither.
