Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. a. Even though I was willing to pay up to $67 for a used textbook, I bought a used textbook for only $58.
b. I sold a jersey sweater for $31, even though I was willing to go as low as $24 in order to sell it.
c. I sold a used laptop for $200 on eBay last week. This week, someone offered me $34 for it.

(a) Concept of consumer surplus

(b) Concept of producer surplus

(c) Neither

Explanation:

(a) The first statement illustrates consumer surplus because it indicates the price I am willing to pay up for the used textbook ($67) and the price I bought the used textbook ($58). Consumer surplus = $67 - $58 = $9

(b) The second statement illustrates producer surplus because it indicates the price I sold the jersey sweater ($31) and the price I was willing to sell ($24). Producer surplus = $31 - $24 = $7

(c) The third statement neither illustrates consumer not producer surplus because it did not indicate the price I was willing to sell the used laptop.

answer; (consensus);