Andrew paid $40 to buy a potato cannon, a cylinder that shoots potatoes hundreds of feet. He friend Javier learns that Andrew bought a potato cannon, he asks Andrew if he will sell it for $65, and Andrew agrees. Javier is thrillect because he would have paid Andrew up to $80 for the cannon. Andrew is also delighted. Determine the consumer surplus from the original purchase and the additional surplus generated by the resale of the cannon. Andrew's original consumer surplus: $ Andrew's producer surplus from the resale: S
Andrew paid $40 to buy a potato cannon, a cylinder that shoots potatoes hundreds of feet. He friend Javier learns that Andrew bought a potato cannon, he asks Andrew if he will sell it for $65, and Andrew agrees. Javier is thrillect because he would have paid Andrew up to $80 for the cannon. Andrew is also delighted. Determine the consumer surplus from the original purchase and the additional surplus generated by the resale of the cannon. Andrew's original consumer surplus: $ Andrew's producer surplus from the resale: S
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Give typing answer with explanation and conclusion
![Andrew paid $40 to buy a potato cannon, a cylinder that shoots potatoes hundreds of feet. He was willing to pay $45. When Andrew's
friend Javier learns that Andrew bought a potato cannon, he asks Andrew if he will sell it for $65, and Andrew agrees. Javier is thrilled
because he would have paid Andrew up to $80 for the cannon. Andrew is also delighted.
Determine the consumer surplus from the original purchase and the additional surplus generated by the resale of the cannon.
Andrew's original consumer surplus: $
Andrew's producer surplus from the resale: S
Javier's consumer surplus from the resale: S
Total surplus generated from the resale: S](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7747d873-9afd-4127-937d-a69f4c3f0a8b%2F3cbc728f-37c5-4043-bf0b-59586754ee42%2Fjcfidae_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Andrew paid $40 to buy a potato cannon, a cylinder that shoots potatoes hundreds of feet. He was willing to pay $45. When Andrew's
friend Javier learns that Andrew bought a potato cannon, he asks Andrew if he will sell it for $65, and Andrew agrees. Javier is thrilled
because he would have paid Andrew up to $80 for the cannon. Andrew is also delighted.
Determine the consumer surplus from the original purchase and the additional surplus generated by the resale of the cannon.
Andrew's original consumer surplus: $
Andrew's producer surplus from the resale: S
Javier's consumer surplus from the resale: S
Total surplus generated from the resale: S
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