Consumer surplus-producer surplus and total surplus

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Reference no: EM131164130

1. Assuming $5 to be the equilibrium price for this market, please shade in Consumer Surplus (CS), Producer Surplus (PS), and Total Surplus (TS).

2. Assume Felix is willing to pay $8 for a pizza cutter. Tim also wants one, but would only be willing to pay $6 for one. At a pizza baker\'s convention, Felix buys the last pizza cutter at the market price just before Tim could buy it. Tim contacts the convention organizers and complains about missing out on the last pizza cutter. The organizers refund Felix for the pizza cutter and allow Tim to buy it at the market price. What happens as a result of this move?

Reference no: EM131164130

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