please help Identify whether each of the following statements best illustrates t

Question

please help Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither. Statement Even though I was willing to pay up to $191 for a used laptop, I bought a used laptop for only $185. I sold a watch for $60, even though I was willing to go as 0 0 low as $53 in order to sell it. Even though I was willing to pay up to $69 for a used textbook and even though the seller was willing to go as low as $58 in order to sell it, we couldn't reach a deal because 0 the government imposed a tax of $20 on the sale of textbooks.

Explanation / Answer

1.

Consumer surplus

Explanation: consumer surplus is the difference between price, consumer is willing to pay and the price actually paid by the consumer.

I, willing to pay = $191                            I, actually paid = $185

Consumer surplus = 191 – 185 = $6

2

Producer surplus

Explanation: it is the difference between the price received by the producer and the price willing to be accepted by the producer.

Producer surplus = 60-53 = $7

3

Neither

Explanation: deal could not happen because additional government tax led it to the increased price and it prevented the trade.

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