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Determine the Amount of Producer Surplus Generated in Each of the Following

question 81

Essay

Determine the amount of producer surplus generated in each of the following situations.
a.Gordon lists his old electric train set for sale on an online auction.He sets a minimum acceptable price,known as his reserve price,of $75.After five days of bidding,the final high bid is exactly $75.He accepts the bid.
b.Francis advertises his car for sale online for $5000,but he is willing to sell the car for any price higher than $2500.The best offer he gets is $2200,which he declines
c.Lewis plays the organ during the Calgary Flames' home games and he likes his job so much that he would be willing to do it for free.However,his annual salary is $30,000.


Definitions:

Same Sex

Relating to a relationship or attraction between two people of the same gender; akin to same-sex couples.

Erotically Attracted

Feeling a sexual desire or attraction toward someone.

Both Sexes

Referring to the male and female gender categories, often used in discussions that involve considerations of both men and women equally.

Erotically Attracted

Refers to a form of attraction that is based on sexual desire or the desire for physical intimacy with another individual.

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