Question

First,label the following scenarios as to whether they would create a producer or consumer surplus. Then, after you have labeled each scenario, calculate the ensuing surplus.

Alice is willing to spend $30 on a pair of jeans, and has a coupon for $10 off she found online. She selects and purchases a $35 pair of jeans, pre-discount.

Answer 1

http://www.economicsonline.co.uk/Competitive_markets/Consumer_and_producer_surplus.html

Answer 2

no

Answer 3

Producer surplus