Suppose that a customer's willingness to pay for a product is $79, and the seller's willingness to sell is $64. If the negotiated price is $68, how much is producer surplus?

Consumer's surplus is $11

Explanation:

What is a consumer's surplus?

Consumer's surplus is the difference between amount (price) that a buyer(consumer) eventually pays to acquire a product and the amount he was willing to pay.

There is a surplus if the amount that a consumer pays to acquire a product is less than he was willing to pay.

In the question, the consumer was willing to pay $79 but he eventually paid $68

Therefore, consumer's surplus is $79 - $68

$11

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.