Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. Consumer Producer Statement Surplus Surplus Neither A local store was having a sale on textbooks, so I bought a used textbook for my brother. Even though I was willing to pay up to $199 for a used laptop, I bought a used laptop for only $189. I sold a watch for $63, even though I was willing to go as low as $54 in order to sell it.
Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. Consumer Producer Statement Surplus Surplus Neither A local store was having a sale on textbooks, so I bought a used textbook for my brother. Even though I was willing to pay up to $199 for a used laptop, I bought a used laptop for only $189. I sold a watch for $63, even though I was willing to go as low as $54 in order to sell it.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:**Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither.**
| Statement | Consumer Surplus | Producer Surplus | Neither |
|---------------------------------------------------------------------------|------------------|-----------------|---------|
| A local store was having a sale on textbooks, so I bought a used textbook for my brother. | ⦿ | | |
| Even though I was willing to pay up to $199 for a used laptop, I bought a used laptop for only $189. | ⦿ | | |
| I sold a watch for $63, even though I was willing to go as low as $54 in order to sell it. | | ⦿ | |
**Explanation:**
- **First Statement**: The statement about buying a textbook during a sale represents a potential consumer surplus as the buyer gains additional satisfaction from purchasing at a lower price.
- **Second Statement**: The purchase of a laptop for less than what the buyer was willing to pay directly illustrates a consumer surplus of $10.
- **Third Statement**: Selling a watch for more than the minimum price the seller was willing to accept demonstrates a producer surplus of $9.
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