Welfare analysis: Basic concepts
Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither.
Statement
I sold a used textbook for 544, even though I was willing to go as low as 539 in order to sell it.
I sold a jersey sweater for
on eBay last week. This week, someone offered me
for it.
Even though I was willing to pay up to
for a watch, I bought a watch for only
.
Welfare analysis: Basic concepts Identify whether each of the following…
Welfare analysis: Basic concepts