Jen values her time at $60 an hour. She spends 2 hours giving Colleen a massage. Colleen was willing to pay as much at $300 for the

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Jen values her time at $60 an hour. She spends 2 hours giving Colleen a massage. Colleen was willing to pay as much at $300 for the massage, but they negotiate a price of $200. In this transaction, a. consumer surplus is $20 larger than producer surplus. b. consumer surplus is $40 larger than producer surplus. c. producer surplus is $20 larger than consumer surplus. d. producer surplus is $40 larger than consumer surplus.

Dr. Summer Schneider PhD · Accepted Answer

A. consumer surplus is $20 larger than producer surplus.Explanation:Before getting to the little mathematics attached to this, there's a few terms we need to establish.1. Consumer Surplus - This is simply the difference in price between what consumers are willing to pay and what they end up paying. 2. Producer surplus - This is simply the difference in price between what a producer is willing to accept for a given good or services and how much they actually end up selling the goods for. Having established those terms,In this situation,Consumer surplus = amount consumer is willing to pay - amount consumer paysCS = 300 - 200 CS = 100Producer surplus = Amount received - minimum amount producer is willing to receivePS = 200 - ( 60× 2)PS = 200 - 120PS = 80The difference between consumer surplus and producer surplus= 100 - 80= 20Therefore, consumer surplus is larger than producer surplus by $20.

Dr. Summer Schneider PhD · Answer

what do you mean.why did u repeat the question.

Dr. Summer Schneider PhD · Answer

Yikes. that sucks dide

Dillan Pacocha

Jen values her time at $60 an hour. She spends 2 hours giving Colleen a massage. Colleen was willing to pay as much at $300 for the

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