Suppose that in the Canadian market for Japanese cars, person 1 is willing to pay $35,000, person 2 is willing to pay $30,000, person3 is willing to pay $32,000, and person 4 is willing to pay $28,000.Suppose that company A has a cost of $28,000, company B has a cost of $25,000, company C has a cost of $30,000, and company Dhas a cost of $32,000.What is the total surplus in this market? Assume that each person is willing to buy at most one car and that each company is willingto sell at most one car.

Answered: Suppose that in the Canadian market for…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

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Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that in the Canadian market for Japanese cars, person 1 is willing to pay $35,000, person 2 is willing to pay $30,000, person
3 is willing to pay $32,000, and person 4 is willing to pay $28,000.
Suppose that company A has a cost of $28,000, company B has a cost of $25,000, company C has a cost of $30,000, and company D
has a cost of $32,000.
What is the total surplus in this market? Assume that each person is willing to buy at most one car and that each company is willing
to sell at most one car.

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In microeconomics, customer excess/surplus is the contrast between the most exorbitant price a buyer will follow through on and the real price they do pay for the services and goods (which is the market cost of the commodity). At the end of the day, buyer/producer excess/surplus is the contrast between the thing a purchaser will pay and what they pay for goods or administration. Economic surplus alludes to two related amounts: consumer surplus and producer surplus.

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