For cach of the scenarios, calculate the surplus and indicate if it is a producer surplus or a consumer surplus. Alice is willing to spend $30 on a pair of jeans, and has a coupon for $10 off which she found online. She selects a $35 pair of jeans which cost $35 pre-discount. Roy is willing to pay $2.50 for a sports drink. He puts $5.00 into the vending machine and pushes the button for ti without noticing that the price has increased to $2.75 until he counts the change he gets back. Roy has a Roy's surplus: S producer surplus. consumer surplus.
For cach of the scenarios, calculate the surplus and indicate if it is a producer surplus or a consumer surplus. Alice is willing to spend $30 on a pair of jeans, and has a coupon for $10 off which she found online. She selects a $35 pair of jeans which cost $35 pre-discount. Roy is willing to pay $2.50 for a sports drink. He puts $5.00 into the vending machine and pushes the button for ti without noticing that the price has increased to $2.75 until he counts the change he gets back. Roy has a Roy's surplus: S producer surplus. consumer surplus.
Chapter3: Supply And Demand: Theory
Section: Chapter Questions
Problem 5WNG
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