CityMesaMiramar Continuing Ed My Institution Open OnDemand a

City-Mesa-Miramar Continuing Ed. My Institution Open OnDemand a Chapter 4 ? INQUIZITIVE Chapter 4: Market Outcomes and Tax Incidence e Page(s) 113-114 1 What are consumer surplus and producer su plus? Jennifer, Tony, and Becky are students in a history class. All three plan on selling their textbooks back at the end of the year. The bookstore will buy each textbook back for $95 Jennifer\'s willingness to sell is $87. Tony wants to get at least $45 for his book, and Becky wants to sell her book back for $105. Place each student\'s producer surplus in order, from highest to least. Start by clicking the first item in the sequence or dragging it here Tony Jennifer Becky

Solution

Producer Surplus (PS) is the difference between the market price and their willingness to sell.
Tony\'s PS = (95 - 45) = $50
Jennifer\'s PS = (95 - 87) = $8
Becky\'s PS = (95 - 105) = -$10