Marcus paid $25 to buy a potato cannon, a cylinder that shoots potatoes hundreds of feet. He was willing to pay $45. When Marcus’s friend Sam learns that Marcus bought a potato cannon, he asks Marcus if he will sell it for $55, and Marcus agrees. Sam is thrilled, because he would have paid Marcus up to $80 for the cannon. Marcus is also delighted.
Determine the consumer surplus from the original purchase and the additional surplus generated by the resale of the cannon.
I need each of the following monetary values. Thanks.
Marcus’s original consumer surplus: $
Marcus’s producer surplus from the resale: $
Sam’s consumer surplus from the resale: $
Total surplus generated from the resale: $