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Blayne Saari
on Nov 25, 2024

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Amanda buys a ruby for $330 for which she was willing to pay $340. The minimum acceptable price to the seller, Tony, was $140. Amanda experiences

A) a consumer surplus of $10, and Tony experiences a producer surplus of $190.
B) a producer surplus of $200, and Tony experiences a consumer surplus of $10.
C) a consumer surplus of $670, and Tony experiences a producer surplus of $200.
D) a producer surplus of $10, and Tony experiences a consumer surplus of $190.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service and the total amount that they actually pay.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive.

Ruby

A precious red gemstone made of corundum (aluminum oxide), prized for its color and brilliance.

  • Analyze and grasp the surplus value captured by consumers and producers through transactions.
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MJ
Melanie JasmineNov 28, 2024
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