Question

Alex sells an ipod for $200 and gets producer surplus of $80.
What is her willingness to sell?
if she sold the ipod for $80, what would her producer surplus have been?
if the price of an ipod were $200, what would her producer surplus have been?

Answer 1

Alex sells an ipod for $200 and gets producer surplus of $80, so her willingness to sell is 200 + 80 = $280.

If she sold the ipod for $80, then her producer surplus would have been 280 - 80 = $200.

If the price of an ipod were $200, then her producer surplus would have been $80.