Total surplus is the difference between the total value that Nothando places on the new bicycle and the cost of producing it.
Total surplus = (Value to buyer) - (Cost to seller)
Total surplus = R4000 - R2000
Total surplus = R2000
Therefore, the total surplus if Nothando buys a new bicycle is R2000.
Suppose that the price of a new bicycle is R3000 Nothando values a ne bicycle at R4000 it cost R2000 for seller to produce a new bicycle what is the value of total surplus if Nothando buys a new bike
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