onsider a buyer and a seller pue gree on the price ( P) of $69.8

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Consider a buyer and a seller meeting to exchange a product. The seller has a minimum willing to sell ( WTS) of $39.50, while the buyer has a maximum willingness to pay ( WTP) of $87.00. If they
agree on the price ( P) of $69.80, then the total surplus is $
P
WTS
WTP
10
20
30
40
50
60
70
80
90
O A. 56.75
O B. 47.50
O C. 17.20
O D. 4130
Transcribed Image Text:Consider a buyer and a seller meeting to exchange a product. The seller has a minimum willing to sell ( WTS) of $39.50, while the buyer has a maximum willingness to pay ( WTP) of $87.00. If they agree on the price ( P) of $69.80, then the total surplus is $ P WTS WTP 10 20 30 40 50 60 70 80 90 O A. 56.75 O B. 47.50 O C. 17.20 O D. 4130
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